Loan calculator
The advertised rate and the real one are not the same number. Fees are their own fields here, because they are what creates the gap.
Fees
You pay each month
471 ₾
Principal and interest 471 GEL + fee 0 GEL
Effective annual rate
12.68%
Advertised: 12.00%
The effective rate is above the advertised one - fees and monthly compounding create the gap. This is the figure to compare offers on.
- Total paid11,298 ₾
- of which interest1,298 ₾
- Total cost of the loan1,298 ₾
Payment schedule
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | 471 | 100 | 371 | 9,629 |
| 2 | 471 | 96 | 374 | 9,255 |
| 3 | 471 | 93 | 378 | 8,877 |
| 4 | 471 | 89 | 382 | 8,495 |
| 5 | 471 | 85 | 386 | 8,109 |
| 6 | 471 | 81 | 390 | 7,719 |
How this is calculated
- The monthly payment is an annuity - the amount stays level, interest dominates early on and principal later.
- The effective rate is solved on the real cash flows: the money actually received (principal minus the one-off fee) against every payment including fees. The monthly internal rate is then annualised.
- This is an estimate on the figures you typed. A bank's final offer may include insurance, collateral valuation or other conditions - read the contract anyway.
Frequently asked questions
What is the effective rate?
The rate you actually pay once fees and monthly compounding are counted. 12% a year compounded monthly is already 12.68%, and fees push it further.
Why does it differ from the bank's figure?
A bank puts all its mandatory costs into its effective rate - insurance, valuation, account servicing. This only counts what you entered. Enter every fee and the two numbers converge.
Why does the interest fall over time?
Interest is charged on the outstanding balance. As the balance falls there is less interest and more of the same payment goes to principal.
What about paying it off early?
The Balance column shows what is left at the end of each month - that is the amount to clear. An early-repayment fee lives in the contract and is not counted here.