An annuity, or annuity payment, is a method of calculating a loan payment in which the loan amount and interest rate on it are repaid in equal amounts throughout the entire loan period. How do I calculate an annuity?
Instructions
Step 1
Check out the mathematical formula for calculating the annuity:
AP = SK × (P × (1 + P) n) / ((1 + P) n - 1), where AP is the annuity payment on the loan, SK - the loan amount, P - interest rate, expressed in shares and calculated for a period (month, quarter, year, day)
n is the number of interest calculation periods.
In this case, the expression: (P × (1 + P) n) / ((1 + P) n - 1) is the formula for the annuity coefficient.
Step 2
Decide on the loan amount, interest rate and the amount of the interest rate period. If you can set the first variable yourself, then the second and third you need to find out at the bank where you want to get a loan. For comparison, choose several banks to find out which conditions are better.
Step 3
Plug in these variables for your loan into the formula. For example, you want to receive 100,000 rubles from the bank. The bank can provide you with a loan on an annuity basis and with the following indicators: interest rate - 20% per annum (monthly interest rate will be equal to 1.6667%), the number of loan periods - 12 months.
Let's make the necessary calculation: AP = 100,000 x (0, 016667 x (1 + 0, 016667) 12) / ((1 + 0, 016667) 12-1) = 100,000 * 0, 016667 * 1, 219439 / (1, 219439-1) = 9261, 975 p. per month
Thus, at 20% per annum for 12 months, the amount will be paid: 9261, 975 * 12 = 111143, 70 rubles. In this case, the cost of using the loan will be: 111 143, 70 -100 000 = 11 143, 70 rubles.
Step 4
Make sure the annuity payment is beneficial to you. Calculate how much you will pay if you have a regular lending scheme, with direct accrual of interest on the remaining amount: in this case, the loan is repaid over the entire period in equal installments, the payment is: 100,000 / 12 = 8,333.33 rubles. per month. Then, the table of loan repayment and interest payments will look as shown in the figure. Thus, you will receive the amount: 100,000 +10 833, 33 = 110 833, 33 p. This amount is less than the amount of the loan payment calculated using the annuity payment method.
