What is the total cost of the loan as a percentage? Loan cost

All banks, without exception, are required to calculate and indicate the PSC on the first page of their loan agreements. This is required by the law “On consumer credit (loan)”. Here is what it says verbatim: “The full cost of a consumer loan (loan) is determined both as a percentage per annum and in monetary terms and is calculated in the manner established by this Federal Law. The full cost of a consumer loan (loan) is placed in square frames in the upper right corner of the first page of the consumer credit (loan) agreement in front of the table containing the individual terms of the consumer credit (loan) agreement, and is printed in numbers and capital letters in black on a white background in a clear, easily readable font of the maximum size from the font sizes used on this page. consumer loan (loan) in monetary terms is placed to the right of the full cost of the consumer loan (loan), determined as a percentage per annum. The area of each square frame must be at least 5 percent of the area of the first page of the consumer loan (loan) agreement." If we simplify what is written in the law, then the point is that the client does not miss the PSC in the contract. Why such concern?

Banks must indicate the PSC so that the client can immediately visually assess what the real, and not indicated in the interest rate on the loan, cost of the loan will be as a percentage per annum, taking into account all commissions and mandatory additional payments, and how much money he needs to return to the bank in the end.

This was also done for the convenience of comparing loan products from different banks, which may have completely different commissions and additional payments (it’s easy to get confused about them). That is, a client, knowing the PSC in several banks, can understand where it is more profitable for him to take a loan.

This is how it happens

It is not necessary that a loan with a stated rate of 30% may be less profitable than one with a rate of 25% per annum. When calculating the total cost, it may turn out that in the second case it is higher: for example, if the bank, in addition to the interest rate, charges various fees - for opening an account, maintaining it, for issuing a card, payments in favor of third parties and, of course, insurance fees. Thus, at a lower interest rate, the actual amount of overpayments may be many times greater than in another bank, where the interest rate is higher, but there are no commissions and insurance. However, banks did not always provide such convenience for the client.

HISTORY OF THE ISSUE

Until 2007, banks did not indicate any full cost of the loan in contracts, and this very concept and calculation formula did not officially exist.

This is how it happens

In 2007, before the introduction of regulation of this point, according to Central Bank statistics, the real rate on consumer loans varied from 90 to 124% per annum, with the stated 29%. For example, in one bank for a loan of 40 thousand rubles. for a period of 18 months, such a real rate was 72% per annum with the stated interest rate for using a loan of 24%.

Therefore, it is not surprising that at that time, according to Zhanna Efimova, a lawyer at the Moscow Society for Consumer Protection, complaints from citizens about violations of their rights when concluding consumer lending agreements were received daily. Some banks generally refused to disclose the effective interest rate until they provided the entire package of documents required to issue a loan. And then the client, who had already gone through all the checks, was too lazy or did not have time to go to another bank, where it is not a fact that the final rate would be lower. The outbreak of the 2007–2008 crisis clearly showed the disadvantages of this approach and forced the Central Bank to intervene and resolve this issue.

First, the Central Bank established the obligation of banks to disclose PIC in its regulations. “The Central Bank’s regulatory document, of course, does not have the status of law, but it is binding,” said Alexey Simanovsky, director of the Central Bank’s department of banking regulation and supervision, when presenting the innovation. “Unfortunately, our powers are not enough to oblige all banks to do this. Those that work with borrowers and loans on an individual basis are not required to disclose PIC." Q.E.D. The measures taken by the Bank of Russia turned out to be insufficient: not everyone counted the PSK, and even fewer banks clearly showed it to clients. As a result, in March 2008, the State Duma established the obligation of banks to calculate the PIC at the level of the law “On Banks and Banking Activities”.

It worked. Having seen the real full cost of the loan, the potential borrower will think three times whether it is worth taking it. This ultimately disciplined the banks.

This is how it happens

Three years later, in 2010, the real cost of loans issued in retail chains was almost equal to the rates stated by banks. The maximum difference between these indicators did not exceed 10 percentage points.

But here, like mushrooms after rain, the microfinance market, which was not covered by the banking law, grew up. And then, already in the second decade of the 2000s, the concept of the PSK and the obligation to disclose it to the borrower were enshrined at the level of the law “On Consumer Credit (Loan),” which also applies to microfinance organizations.

COMPLETE BUT NOT INFINITE

And yet this was not enough. There were borrowers who were ready to take out loans at any interest rate, and lenders who were ready to issue obviously non-repayable loans at thousands of percent per annum.

To eradicate this, in 2013 the idea appeared to limit the maximum total cost of loans and borrowings. It should not deviate from the market average PSC by more than a third and in any case be no more than 365% per annum. The new average PSC indicator for the market for different amounts and terms of loans and other loans is calculated quarterly by the Central Bank for banks, microfinance organizations, cooperatives, and pawnshops. The results of the calculations are posted on the official portal of the Central Bank.

This is how it happens

For example, the average market price of consumer loans is from 30 thousand rubles. up to 100 thousand rubles. for a period of more than a year is 19.628%, which means the limit cannot exceed 26.171%. You don’t have to count it yourself - you can look up the values using the link above.

An exception to these restrictions are unsecured loans for a period of no more than 15 days in the amount of up to 10 thousand rubles. But they are special, these are the so-called payday loans - they are not discussed in this article.

PSK BY SYLLABLES

So, what is included in the UCS and how is it calculated?

principal amount (how much money you received from the bank);
interest on this amount;
various payments in favor of the creditor, if they are specified in the agreement;
fee for issuing and servicing an electronic means of payment (in simple words - a plastic card), with which you will repay the loan;
various payments in favor of third parties (for example, insurance companies, developers, notaries, etc.);
the amount of the insurance premium (if this is a so-called collective insurance scheme, when the beneficiary under the contract is a bank);
the amount of the insurance premium under a voluntary insurance agreement, if, depending on its conclusion, the bank offers other conditions for the loan (for example, when the repayment period, PIC, interest rate, other payments and commissions change).

These are the client’s costs under the loan agreement.

The calculation of the UCS does not take into account:

fines for non-compliance by the client with the terms of the contract;
mandatory types of insurance (CASCO insurance or apartment insurance to protect collateral property);
commissions for foreign exchange transactions (for example, if the loan was taken out in dollars);
penalties under the contract;
commission for suspension of operations;
fee for non-cash money transfer;
fee for receiving (repaying) a loan in cash (settlement and cash services);
commission for using online or mobile banking, SMS notification.

Lifehack

When applying for a loan, do not ignore commissions that are not included in the calculation of the PSC. In some cases they can be significant. Thus, some banks set high fees, for example, for SMS notifications or chat with an employee through a mobile application. Subsequently, these expenses may become an unpleasant surprise for you if you did not pay attention to them when signing the documents. To avoid surprises, do not rush under any circumstances when signing a loan agreement.

PSK IN FORMULAS AND NUMBERS

Article 6 of the Law “On Consumer Credit (Loan)” establishes a formula for calculating the PSC. For the calculation, you will need information from the bank - this can be obtained from an employee of the credit department. The formula is quite simple:

PSK = i x NBP x 100

PSK, as we already know, is the full cost of the loan expressed as a percentage per annum.

NBP is the number of base periods during the loan term, that is, how many payments the client must make. Standard NWP per year with monthly loan payments = 12. That is, for a three-year loan, NWP will be 36. For quarterly payments, NWP per year = 4. For payments once a year or less, NWP = 1. The base period in the loan agreement is the standard time interval . It is most often found in the payment schedule, which is necessarily issued along with the agreement.

i is the interest rate of the base period, expressed in decimal form. That is, if the annual rate is 12%, then with monthly loan payments per month it will be 1%, and in decimal form - 0.01.

As you can see, nothing complicated, but only at this stage. The main difficulty is the formula for calculating the interest rate of the base period:

Theoretically, to calculate this indicator, you need to have a sample loan agreement that reflects all the necessary data. In practice, you can request the number of base periods and the base period interest rate from the bank's loan officer, either orally or in writing. Please note that the lender cannot refuse to provide this information. If you are refused to provide information, you should file a complaint with the Central Bank.

But this is an extreme case. The bank is obliged to consider the PSK as the client, and in practice this is what happens. You can double-check for yourself, if there is such a need, in a simpler way.

Lifehack

If you don’t want to worry about doing your own calculations, you can enter the data into an online or mobile calculator. It’s even better to do this in several calculators at once, so that you can then compare the results with each other and with what the bank indicates in the PSK. Of course, it will take time, but in the future it will pay off in full thanks to the money saved on the loan.

PSC in rubles - the second value required by law - is calculated using the following formula:

PSK = loan cost + additional payments + overpayment.

To calculate additional payments, add up all expected expenses: commissions, payments (monthly, etc.) for the entire period of the contract. Data on overpayments can be found in the payment schedule.

This is how it happens

Once you know the specific data, you can calculate the total cost using a simple formula. For example, there is a loan worth 220 thousand rubles. Term - 24 months at 17% per annum. There are additional fees: 1.5% for provision, 1.2% for maintenance.

With an annuity payment, that is, with an equal monthly payment, the overpayment will be 41 thousand rubles. It can be calculated in a credit calculator - for example, in this one: http://calculator-credit.ru/calculator.php.

To issue money you will have to pay:

220,000*1.5/100 = 3.3 thousand rubles.

The service fee will be:

(220,000 + 41,000)* 1.2/100 = 3.132 thousand rubles.

PSK = 220 + 41 + 3.3 + 3.132 = 267.432 thousand rubles.

It should be borne in mind that the PSC takes into account all payments that the client will make over the entire loan term. In other words, if you are going to repay the loan early, this value will change.

This is how it happens

Let's look at an example: let's take a mortgage loan. In the case of a long repayment period, it may be advantageous to take out a loan with a fee to reduce the interest rate, but in case of early repayment the fee is not refundable. In another case, a loan is taken out at a higher interest rate, also for a long period, but is repaid ahead of schedule. The final payment amount will be lower than in the case of a non-refundable fee.

So, despite the importance of the PSC indicator, it often depends not only on the bank, but also on the client’s plans.

Lifehack

To compare and choose the most profitable option, you should use a loan calculator, which allows you to compare different options.

In it, you must first enter the option with a commission for the reduction. Then consider the option where you repay the loan with a higher interest rate, but over a shorter period. You will immediately clearly see where the overpayment amount will be higher and where lower.

A SPECIAL CASE

They say that calculating the PSC for credit cards is a special case. Why?

Calculating PSC for credit cards is a very complex process because there is a grace period and a revolving line of credit. To calculate the PSC of credit cards, the bank uses the maximum possible credit limit with equal frequent debt repayments (meaning monthly payments).

Let's give an example to show how this works.

This is how it happens

The card is issued for a certain period (say, 3 years) with a set limit of 100 thousand rubles. The bank believes that the client uses the entire amount at once and will repay the loan over the entire 3 years, making a minimum monthly payment of 10% plus interest. But banks can calculate PSC for credit cards using different methods, so you should be more careful when studying the terms and conditions of a credit card.

The PSC includes the loan money available to the client. This creates an interesting feature. Even if you do not pay for annual maintenance or commissions and always stay within the grace period, that is, you actually use the loan for free, the PSC will still be higher than the interest rate.

Therefore, it should be remembered that the PSC is a theoretical value and can sometimes distort the amount of overpayment on the loan.

HOW IS IT MORE PROFITABLE TO TAKE A LOAN?

Experts offer a range of advice on this matter.

According to Alor Broker analyst Alexey Antonenko, an approach to reducing the total cost of a loan or loan may look like this:

Provide documents confirming your income.
If you do not plan to repay the loan ahead of schedule, then you should choose a product with the lowest PSC, paying attention to additional commissions, fines and penalties that are not included in it.
Calculate whether you need insurance or not. If you are confident in your abilities and the source of your income, then it may be worth refusing insurance if the reduction in the interest rate does not compensate for the costs of it. Moreover, insurance payments are often included in the loan, increasing it. You can use a loan calculator for calculations.
Perhaps it makes sense for you to enter into a loan agreement with a differentiated payment scheme. In this case, the borrower himself decides how much he will repay in excess of the minimum payment. When you make a larger payment, the principal amount is reduced, and the rest is repaid gradually. At the same time, monthly payments are reduced. This scheme allows you to reduce the final overpayment.
Choose loans without penalties for early repayment.
If you plan to repay the loan in advance, then calculate the approximate time frame within which you want to meet it. Compare what is more profitable: taking out a loan with a commission for reducing interest or with a higher interest rate and early repayment.
Avoid late repayments to avoid paying fines and penalties. Moreover, a damaged credit history will affect the ability to take out a loan in the future. If you have temporary difficulties, you need to contact the bank for refinancing. It is worth doing this before the delays begin.
Make a choice in favor of your salary bank. Most often, he offers the most favorable conditions to his salary clients.

Another very important tip: despite all the PSC, pay attention to the amount of payment per month in rubles. This figure is more practical, and most importantly, easily comparable to the borrower’s income; it will allow him to understand whether he will be able to take out a loan or not, or even be able to save up for it, experts advise.

Well, and the main thing. Read the loan agreement carefully. Ask about anything you don't understand. “Ask the credit specialist questions, and if it so happens that you doubt the veracity of his words, turn on the recorder and warn him about this on record,” advises Antonenko.

Not everyone understands what the full cost of a Sberbank loan means, how it is calculated and why it is needed. When receiving all types of loans, in addition to the conditions offered by banks, it is important to refer to this parameter. It helps you compare offers and choose the more profitable one. The rules for its calculation are set out in the legal document Federal Law-N 353 dated 03/07/18.

What is the total cost of the loan?

The total cost of the installment plan implies the totality of the expected installments that the borrower undertakes to pay. It is calculated as a percentage, and sometimes as a monetary value. The assigned monthly and other fees are specified in detail in the agreement between the client and the financial company.

It is not easy for an ordinary consumer to understand what it is the first time. For example, on the Sberbank website there is an advertisement that the bank reduces the cost to 11.9% per annum for those who apply for a loan through the Sberbank Online service. But if you go to the website section, you can see information that the minimum value for the full cost of consumer loans is 12.51%. There is also information about the maximum value – 20.94%. It becomes unclear where all this information came from and what it means.

This concept is not synonymous with percentage. Her client pays for using the lender's funds. It is accrued for a certain period. There is also a whole list of payments, some of which are legally required to be included in the payment. The other part, due to certain circumstances, has the right not to be considered when calculating this value.

At the legislative level, there is a list of payments that must be taken into account when determining the full cost of borrowed funds. Financial companies are required to fully disclose to the consumer all the nuances of providing a loan, including the prices at which the calculation was made.

Organizations take into account the following consumer costs when calculating the full installment plan:

Closing the debt under the contract. It is calculated using a formula that can be found in regulatory documents.
Repayment of interest, which is established by the terms of the agreement. The money issued is estimated as an overpayment - the amount that will be returned by the buyer in excess of the principal debt.
Payments that depend on the disbursement of loan money. For example, in order to avoid possible risks in large transactions, you have to resort to a letter of credit payment system - opening a special account or placing cash in an individual safe.
For a plastic card.
Expenses for services to third-party partner companies. These include compensation for insurance, the work of an appraiser, a notary, etc. Services of transactions through other organizations are also paid. An exception would be the case with car lending - CASCO is not included in the total debt.
Payment for insurance, where the recipient of the benefit is not the borrower or relatives, but the company itself. For example, in the event of an insured event related to the life and health of the borrower, the insurance company is obliged to transfer the entire cost to the lender.
Additional types of insurance, depending on the conclusion of which the lender offers different conditions for issuing cash. For example, companies can reduce interest rates if the consumer agrees to enter into such an insurance contract, or, conversely, increase them if they refuse.

If the contract is renewed when the insurance company changes, the full cost of the debt changes. The company must notify the buyer of this in advance.

There are payments that are officially allowed not to be taken into account when calculating the full cost of the installment plan. It turns out that the full price of the loan is a relative unit. All that remains is to rely on the integrity of the financial institution, which first discloses to the consumer all information about spending. You should only contact a reliable lender with a proven reputation.

The Bank reserves the right not to take into account:

Fees specified in legal requirements. For example, compulsory motor liability insurance is not included, but in fact it is mandatory.
Penalties and penalties for violation of the terms of the agreement. Most often they are associated with late payment. As soon as the creditor finds out, the statute of limitations begins. During this time, the seller may.
Various deductions: when withdrawing cash from an ATM, when paying early, etc.
Cash contributions to insurance companies for .
Payment for property protection services, which does not affect the loan price. If you simultaneously insure your life, the rates will be lower than if you take out the same without insurance.

The client has the right to write a refusal to accept insurance within half a month, with a request to return part of the paid funds. In this case, part of the money is lost, because... the service had already been provided before the notice was written.

Regulatory rules on lending do not provide specific information about calculations. There are also no clear boundaries for what should be included in the total cost of the loan. This becomes the reason for the double interpretation of the law. Organizations, taking advantage of this, think in such a way as to have maximum benefit for themselves.

The Central Bank of Russia sets quarterly restrictions with a maximum and minimum price range. This is unprofitable for financial institutions, so they have two solutions: reduce price tags, which will not bring profit, or eliminate additional payments.

Sberbank includes the following in mortgage debt:

principal with interest;
, upon registration of which 1% is reduced.

Other types of insurance and property valuation are not added to the total price.

When applying for a loan in the SB of Russia, there are several options for calculating the full price of the obligation. The organization deliberately tries not to take into account other payments. If any insurance is nevertheless included, it is deducted from the total amount.

If you borrow 150,000 rubles from the Security Service of Russia. with insurance of 8,000 rubles, then it will subsequently be included in the total debt. Thus, in fact, the borrower receives 142,000 rubles. instead of the stated amount.

At the stage of document preparation, the client is provided with information about prices. In the contract, the full cost of the installment plan is placed on the 1st page in the upper right corner and is highlighted with frames. The information is printed in the form of readable text, contains specific numbers and their interpretation in capital letters. The area of such a frame in accordance with Federal Law-378 is no less than 5% of the entire page.

If the debt is closed early, the value of the full amount changes. The client can safely obtain this information from the seller in the form of a notification about the full cost of the loan.

How to calculate the total cost of the loan yourself

The formula for finding the full cost of the loan is given in Article 6 of the Federal Law on Lending. In order to be able to count on it, special mathematical knowledge is required. Even bank employees sometimes find it difficult to calculate without a special program.

PSK = SDP + KDV + P

When calculating the CDV, all expected expenses, both one-time and monthly, are considered for the entire period of the agreement. The overpayment depends on the accrued interest. Numerical data are expressed in monetary terms.

Next, you need to select the type of payment: annuity or. The first means equal fixed payments under the contract. The second type of payment - differentiated - means that contributions will not be the same. As a rule, in the initial period they have a maximum value.

After filling out the fields of the calculator, click the “Calculate” button. The program will give an approximate result.

Once you know the specific data, you can make a simple calculation of the total cost using a formula. For example, there is a loan worth RUB 320,000. Term – 36 months at 16% per annum. There are additional fees: 2% for provision, 1.2% for service.

If you make the same contribution every month, the overpayment will be 85,000.

For issuing money the client will be charged:

320 x 2% = 6.4 thousand rubles.

The service cost is:

(320 + 82) x 1.2% = 4.86 thousand rubles.

Total debt value:

320 + 85 + 6.4 + 4.86 = 416.26 thousand rubles.

The calculation is approximate, but it can be used to compare several proposals and choose something with the lowest cost.

How to reduce the cost of a loan

The rules applied by banks for calculating the full cost are not always beneficial for ordinary consumers. Numerous monetary withholdings are placed on top of the underlying obligation.

In this situation, you can try to reduce the total cost of the obligation in several ways:

Draw up an agreement with the lowest prices.
After registering the contract, the client can try if it really does not help reduce repayments. If it reduces, compare and choose the more advantageous side. In the absence of the possibility of refusal, it is necessary to carefully select an insurance organization, checking its reliability and the quality of the services offered.
If possible, use a differentiated payment scheme. It involves different monthly payments at the discretion of the borrower. When you make a larger contribution, the principal debt is reduced, and the rest is repaid gradually. At the same time, the monthly fee is gradually reduced. A differentiated fee allows you to reduce the final overpayment by installments.
Choose a consumer loan where there is no withholding.
Avoid violations of the terms of the agreement, in particular, delays in depositing money into the account.
If possible, choose a loan with a shorter term. The shorter the term, the lower the total cost of the installment plan will be.
Use a money company through which the borrower receives his salary. Some money product sellers offer profitable programs to their customers.

You should not focus only on reducing the cost of the obligation. When refusing insurance, it is necessary to consciously analyze the possible risks that it can protect against in the event of an unforeseen situation.

Financial institutions include additional payments in the cost of the loan in different ways. The computational process for paying in full installments is quite difficult and confusing. For this reason, it can be interpreted ambiguously. This makes it difficult to correctly compare different product options. Therefore, it is important to learn how to make calculations yourself and be able to choose among the more reliable sellers.

You can independently calculate the full price of borrowed money using the standard formula specified in Art. 6 Federal Law-N 353. You can choose a more advantageous offer in another way. You need to decide on its full size and actual repayment period, analyze the options offered by various banks, then calculate the cost of the overpayment for all offers. The amount of funds that will be returned to the seller in excess of the principal debt determines its full cost.

Total loan cost

Total cost of loan (FLC)- this is the amount of money that will have to be paid in addition to the cost of the loan itself, taking into account interest, insurance and other mandatory payments. The Central Bank of the Russian Federation has obliged all banks and microfinance companies to indicate the PSK in large font in the upper right corner - in % and rubles. As a rule, the loan price does not coincide with the actual rate under the contract, since this amount also includes other payments.

How to calculate the full cost of the loan and find out what it consists of, we will look further.

Why is the PSC higher than the interest rate under the contract?

A bank is a commercial organization interested in making a profit. Loan agreements are drawn up in such a way that many clients understand practically nothing about them, so you should carefully study the contents of the document, paying special attention to the “fine print”.

The real cost of a loan is also high for the reason that a significant part of borrowers do not pay their obligations. Banks compensate for outstanding debts by increasing rates, thereby “shifting” the obligations of defaulters onto the shoulders of bona fide clients.

Actual lending rate- this is interest accrued on the amount of the principal debt (loan body). It is lower than the PSK, because in addition to%, other payments are also provided.

What payments are included in the cost of the loan?

According to the law, the creditor has the right to include the following articles in the PSC:

the amount of % accrued for the actual period of use of money;
credit card issue fee;
the amount of insurance, if the conclusion of an insurance transaction is a mandatory condition of the credit institution when issuing borrowed funds;
additional payments associated with the provision of a loan, for example, the cost of paperwork or storing money in a bank for a mortgage or car loan;
payments to third parties directly related to the issuance of a loan product - lawyers, notaries, insurers and other bank specialists who prepare documents for processing a loan.

What banks do not take into account in the PSK

Lenders do not include the following expenses in the full loan amount:

compulsory insurance (CASCO, OSAGO, etc.);
fines for violation of contract terms;
auxiliary costs for servicing the product associated with changing the terms of the contract at the decision of the borrower (for example, increasing the loan term with recalculation of the amount);
commissions for making payments through terminals, transfer systems or mobile applications;
optional insurance, which can be canceled within two weeks.

All of the listed payments may affect the overpayment, but in fact they are not taken into account in the PSC.

It is important that the borrower is informed of the PSC before concluding the transaction. If the creditor hides this information, the agreement must be declared invalid, and the funds spent by the client must be compensated by the bank.

How to calculate the cost of a loan

The real price of the loan is determined using complex formulas, which are time-consuming and unnecessary for the average person to understand. But it will be useful to understand the general calculation algorithm. First of all, it should be clarified that interest, commission fees and other payments within the framework of lending are calculated using separate formulas and then summed up into the total price of the loan.

The basic formula for calculating the UCS:

PSK = i * NBP * 100

Here NPB is the number of base periods in a calendar year. This indicator is understood as the number of time intervals between loan payments per year. For example, according to the schedule, the client must make payments once a month, which means the NPB is 12. If payments are made quarterly, the NPB is 4, if every six months - 2, etc.

The base period (BP) is the time period between loan payments. For example, if the borrower repays the debt monthly, the BP is equal to 1 month.

Now the calculation is carried out using a new formula:

i is the base period interest rate in decimal form, which is calculated as the smallest positive solution of the equation:

, Where:

m is the number of cash flows, which is equal to the number of loan payments + one more payment when issuing a loan;

DP k - the size of the kth cash payment (issuance of credit funds - with a “-” sign, debt repayment - “+”;

q k - the number of complete BP from the moment the loan is granted until the k-th payment;

e k is the period expressed in shares of the BP from the end of the q k -th BP until the k-th payment is made. Calculated using the formula:

e k = mod [(DP k -DP 1)/BP]/BP, where mod is the remainder of the division.

This formula is used in the calculation algorithms of banking programs, which automatically determine the cost of the loan after entering all the parameters. This formula is not used for manual calculations on your own. It is more convenient to calculate the UCS in Excel using special formulas.

The calculation for i would look like this:

After this, you need to multiply the result by the NPB and get the cost of the loan. In our case - 0.01584*12*100 = 19%. That is, the PSC coincides with the interest rate under the agreement. If the bank charges additional fees for issuing a loan, the monthly payment increases. Accordingly, the total cost of the loan increases.

In addition, Excel has a built-in internal rate of return (IRR) function that is suitable for calculating the IRR. This function is called PURE.

Let's say the borrower received a loan in the amount of 120,000 rubles. for 12 months, at 28% per annum. To determine the UCS, enter the data from the contract. In the first cell in the “Amount” column, indicate the size of the loan received with a “-” sign - this is the size of the first cash flow.

The resulting PSC value is 32.04%. This means that the cost of a loan for a period of 1 year at 28% per annum will be 32.04%.

If the loan was provided without additional fees and commissions, the TIC will be equal to the contractual interest rate.

If the client has not yet concluded an agreement and does not have a payment schedule in hand, he can use it on the bank’s official website. This makes it convenient to compare lending conditions in different organizations. Here is a ready-made template using which you can independently calculate the full cost of the loan in an Excel spreadsheet.

Calculation using a simplified formula

A simplified formula allows you to calculate the cost of the loan manually:

Calculation algorithm:

divide the amount of payments for the entire loan term (S) by the amount received from the lender (S 0) and subtract one;
Divide the resulting figure by the number of years of lending and multiply by 100.

UCS=(S/S 0 - 1)/n*100

For example, a consumer received 2 million rubles. for 2 years, at 10% per annum with an annual additional fee of 12 thousand rubles. Type of payments, the monthly payment amount is 47,144.93 rubles. including % and additional fees.

Total amount of debt:

47144.93 rub.* 24 = 1131478.32 rub.

We substitute this figure into a simplified formula:

The loan price per year is 6.57%, for two years - 13.15%.

The average market PSC can be found on the website of the Central Bank of the Russian Federation. This is a cross-section of the TOP 100 leading banks in the country.

According to the legislation of the Russian Federation, the price of a loan cannot exceed the national average by more than 1/3. For example, if consumer loans are issued at an average interest rate of 25%, the maximum rate is 32.5%.

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FCC (total cost of credit) shows the actual interest rate on the loan. Previously, this criterion was called the effective interest rate. The parameter takes into account not only the principal amount of debt and interest, but also almost all additional payments by the borrower according to the terms of the loan agreement (commissions, credit card fees, insurance premiums and bonuses, if insurance affects the procedure for issuing a loan). Registration fees, penalties, fines and other payments that do not affect the size and conditions of obtaining a loan are not taken into account.

Formula for calculating UCS

From September 1, 2014, a new formula is in effect for calculating the full cost of the loan. Grounds: Federal Law No. 353 of December 21, 2013 “On consumer credit (loan)” (see Article 6 “Full cost of consumer credit (loan)”).

For the new calculation of the PSC, legislators established a formula that is used in a number of foreign countries to find the effective annual percentage rate (APR, or Annual Percentage Rate).

The formula itself:

PSK = i * NBP * 100 .

NBP is the number of base periods in a calendar year. The length of the calendar year is assumed to be 365 days. With a standard payment schedule with monthly payments under the “annuity” system, NBP = 12. For quarterly payments, this figure will be 4. For annual payments – 1.
i – interest rate of the base period in decimal form. It is found by selection as the smallest positive value of the following equation:

Let's look at the components:

DP k – the value of the kth cash flow under the loan agreement. The amount provided by the bank to the borrower is included in the cash flow with a minus sign. Regular payments under the loan agreement are marked with a “plus” sign.
m – number of payments (number of amounts in cash flow).
e k – period expressed in parts of the established base period, calculated from the end of the qk-th period until the date of the k-th cash payment;
q k – number of base periods from the date of loan issuance to the k-th cash payment;
i – base period rate in decimal form.

Let's show the calculation with an example.

Example of calculating UCS in Excel

The borrower takes out 100,000 rubles on 07/01/2016 at 19% per annum. Loan term – 1 year (12 months). The payment method is annuity. Monthly payment – 9216 rubles.

Let's enter the input data into the Excel table:

Let's make the calculation:

In our example it turned out that i = 0.01584. This is the monthly size of the PSC. Now you can calculate the annual value of the total cost of the loan.

The formula for calculating UCS in Excel is simple:

The value cell is set to percentage format, so multiplying by 100% is not necessary. We simply found the product of the loan term and the interest rate of the base period.

The calculation using the new formula showed the PIC equal to the contractual interest rate. However, in this example, the borrower does not pay the lender additional amounts (commissions, fees). Interest only.

Let's look at another example, with additional costs.

Cash flow will change accordingly. Now the borrower will receive 99,000 rubles. And the monthly payment due to the fee will increase by 500 rubles.

The base period interest rate and the total cost of the loan have increased significantly.

This is understandable, because The borrower, in addition to interest, pays the lender a commission and fee. Moreover, the fee is monthly. That is why there is such a noticeable increase in PSC. Accordingly, the cost of the loan product will be more expensive.

Financial termsFull cost of credit (FCC)

Many borrowers take out long-term loans, which are repaid not in one, but in several (often numerous) payments. It is simply unrealistic to manually calculate the full cost of such loans using standard formulas.

After reading the article Formula for calculating the UCS, you will find out what it is i, e k, DP k– we will talk about them further.

Here's a look at what the equation for calculating the interest rate of the base period looks like ( i) for an annuity loan of size 100,000 rub., taken on 3 months under 35% per annum, provided that e k equals zero:

Having calculated the annuity payment for this loan, we found out that it is equal to 35,296 rubles. Actually, this will be our monthly payment ( DP k).

Total cost of loan: what is it and how to calculate it

We hope you have no questions about the other values of this equation. However, another question arises: “How to solve it?!” Moreover, note that we are considering a loan that is repaid in just three payments. It’s scary to imagine what a similar equation would look like for a loan repaid in twenty payments. But such repayment schemes are widespread.

Simplified UCS formula

The temabiz.com portal team has developed its own formula for calculating the UCS. In our opinion, it is simpler and more understandable. Before demonstrating it, we want to warn you:

This formula is not in government regulations, and therefore it is not used by credit institutions.

There is no need to require banks to calculate the PIC using our formula - they will not do this. But you can use it to find out for yourself the real full cost of the loan. Okay, enough chatter, here it is:

PSK– the total cost of the loan, indicated as a percentage per annum;

S– the total amount of all loan payments (including commissions, insurance, etc.);

S 0– the amount of the loan issued;

n– loan term (in years).

An example of a simplified UCS calculation

Let's calculate the full cost of our three-month annuity loan as an example. So, its sum ( S 0) is equal to 100,000 rubles. The loan will be repaid in three annuity payments of 35,296 rubles. Let's assume that the bank does not impose any additional hidden fees on the borrower. In this case, the total amount of all payments ( S) will be 105,888 rubles(35,296*3=105,888). Loan terms ( n) is equal 0.25 years(3 months/12 months = 0.25). We substitute this data into our formula and find the UCS:

So, the total cost of the loan is 23,552% per annum. To calculate it, we needed a regular calculator and a few seconds of time. In a similar way, you can calculate any loan with any number of payments. Our formula can be safely given the title “People’s formula for calculating the PSK” - both a professor and a janitor can easily understand it.

Well, friends, we’ve sorted out the formulas and calculations. Let's find out what payments are included in the full cost of the loan.

Calculation of the total cost of a loan in Excel using a new formula

Formula for calculating UCS

For the new calculation of the PSC, legislators established a formula that is used in a number of foreign countries to find the effective annual percentage rate (APR, or Annual Percentage Rate).

The formula itself:

PSK = i * NBP * 100.

NBP is the number of base periods in a calendar year. The length of the calendar year is assumed to be 365 days. With a standard payment schedule with monthly payments under the “annuity” system, NBP = 12. For quarterly payments, this figure will be 4. For annual payments – 1.
i – interest rate of the base period in decimal form. It is found by selection as the smallest positive value of the following equation:

Let's look at the components:

DP k – the value of the kth cash flow under the loan agreement. The amount provided by the bank to the borrower is included in the cash flow with a minus sign. Regular payments under the loan agreement are marked with a “plus” sign.
m – number of payments (number of amounts in cash flow).
e k – period expressed in parts of the established base period, calculated from the end of the qk-th period until the date of the k-th cash payment;
q k – number of base periods from the date of loan issuance to the k-th cash payment;
i – base period rate in decimal form.

Let's show the calculation with an example.

Example of calculating UCS in Excel

The borrower takes out 100,000 rubles on 07/01/2016 at 19% per annum. Loan term – 1 year (12 months). The payment method is annuity. Monthly payment – 9216 rubles.

Let's enter the input data into the Excel table:

Total loan cost - calculation formula

In Excel, this can be done using the VSD function. Let's imagine loan payments in the form of cash flow:

Let's make the calculation:

In our example it turned out that i = 0.01584. This is the monthly size of the PSC. Now you can calculate the annual value of the total cost of the loan.

The formula for calculating UCS in Excel is simple:

The value cell is set to percentage format, so multiplying by 100% is not necessary. We simply found the product of the loan term and the interest rate of the base period.

Let's look at another example, with additional costs.

Cash flow will change accordingly. Now the borrower will receive 99,000 rubles. And the monthly payment due to the fee will increase by 500 rubles.

The base period interest rate and the total cost of the loan have increased significantly.

When a borrower decides to take out a loan from a bank, no matter what kind, for example, consumer or mortgage, what does he first pay attention to? On the interest rate. Let's look at what it is and what this rate may depend on.

What is the interest rate?

The interest rate is an amount indicated as a percentage of the loan amount that the recipient of the loan pays for using it for a certain period of time.

Full cost of loan - what is it?

In simple terms, the interest rate is the actual fee for using funds issued by the bank. And, as you know, you have to pay for services.

What determines the interest rate on a loan?

The interest rate on the loan depends primarily on the current refinancing rate of the Central Bank and cannot be lower than the latter. Otherwise, the bank will operate at a loss, and no one will allow this.

Then the question arises: why, given the current refinancing rate, say, 10%, the loan rate is 20%? Do not forget that banks are financial organizations whose work is also aimed at making a profit. Accordingly, the indicated 20% includes the bank's profit.

Please note that the rate may vary under similar conditions. For example, two borrowers borrow the same amount from the same bank, but their interest rates are different: one has 17% per annum, and the other has 20% per annum. Why? Because the interest rate also depends on the risks of the bank itself. The interest rate is influenced by factors such as:

Borrower's earnings level

Availability of a guarantor or collateral

Loan amount and review period

Accordingly, the less the bank risks, the lower the interest rate.

Types of interest rates

Currently, there are three main types of interest rates used in lending: simple, complex and floating.

Simple: during the entire loan term, at each interest rate application period, the original amount of the debt is used to calculate interest.

Complex: throughout the entire loan period, in each period of application of the interest rate, the amount of debt accrued over the previous period is used to calculate interest.

The floating rate depends on current financial indicators. This means that in case of certain changes, the bank has the right to unilaterally change the interest rate, since it has every right to do so. The use of a floating rate is beneficial for the borrower only if the rate decreases, and in the conditions of the modern economy it is difficult to count on this.

Is there a maximum interest rate?

Yes. The maximum rate on bank cash loans should not exceed 57.3% per annum, according to the law “On consumer credit (loan)” as of the time of writing. The regulator can adjust this value once a quarter.

However, what is described applies to banking organizations, but this will not affect various microfinance companies, so MFO programs, at which the rate can be up to 500-800% per annum, will not disappear anywhere.

When analyzing bank offers, it can be revealed that there is an annual interest rate, and there is also a total cost of credit (FCC), which is slightly higher than the annual rate.

How to calculate the full cost of the loan - where it is indicated in the agreement and what it consists of

PSK is, in fact, the rate at which loan payments are calculated. The lower this value, the more profitable the offer.

The essence of the PSK

The total cost of a consumer or other type of loan is the current interest rate applicable to the agreement. That is, this is the annual rate itself, to which various fees are added. Moreover, the law determines what banks can include in the PSK and what not.

What banks can include in the PSK:

annual interest rate;
various fees: for issuing a loan, servicing a loan account, reviewing an application;
if we are talking about a credit card, the fee for issuing and servicing it;
payments in favor of third parties, if they are involved when applying for a loan;
insurance premiums if the borrower is not a beneficiary under the insurance agreement.

What according to the law cannot be included in the PSK:

any payments related to late repayment of debt;
commissions for transactions with currency, conversion;
insurance premiums that are not related to the loan, for example, the purchase of compulsory motor liability insurance, when the bank does not require CASCO.

When applying for a consumer loan, you must compare offers from different banks, and the comparison must be made not based on the annual interest rate, but specifically on the PIC. The lower the PSC under identical loan conditions, the more profitable the offer for the borrower.

Annual rate and PSC

The annual percentage rate is the main tool for calculating overpayments, but it is not an objective indicator. In the description of the loan product, banks indicate the rate in annual terms, but the value of the PSC is not advertised as a standard, since it is always higher.

For example, one bank may offer a loan at 18% per annum, and another at 20%. The borrower sees that the first bank provides more favorable terms for concluding an agreement and turns to it. But if you contact both of these banks and calculate the overpayment, it is quite possible that in the bank where the annual rate is 20%, it will be lower. This is all due to the difference in the PSC. In the first case, for example, it can be 22% with an annual rate of 18%, and in the second 21% with an annual rate of 20%.

Although bank managers claim that the total cost of a loan is only a technical indicator, in reality this is not the case. This is an indicator that directly affects the development of the payment schedule and the calculation of overpayments.

PSK in the loan agreement

Before the Law on Consumer Lending came into force, the Central Bank simply obliged banks to tell borrowers the value of the PSC when issuing loans. But in fact, no one did this, and it was difficult to prove the violation. Therefore, a new clause regarding the PSK was prescribed in the Law; now the client cannot help but see the full cost of the loan.

The fact is that now banks are required to indicate the full cost of the loan on the main first page of the loan agreement. The value of the PSC must be contained in a frame, which is located in the upper left corner of the loan agreement. Moreover, it should be a noticeable frame, occupying at least 5% of the page. The font for writing information should not be blurry or incomprehensible.

How to correctly calculate a consumer loan

A convenient option for the borrower is to use a universal online calculator. It is enough to enter into the program the interest rate, the loan amount and its term: then the calculator displays a payment schedule. But citizens take information about the product they are interested in on the bank’s website, and there, in the description of the loan, it is the annual rate that appears, and not the PSC. That is, the calculation will be somewhat incorrect; in fact, the overpayment will be greater.

The formula is quite complex, so it is more convenient to use EXCEL to calculate payments and overpayments; you can also find instructions on the Internet.

In general, the surest method is to contact the bank. To begin with, the calculation of the schedule will be preliminary, since interest rates in many banks depend on the borrower’s personal data. But after completing the application and receiving a positive response, the client will see the exact amounts. It is not necessary to take out a loan right away; the borrower is given a month to think about it.

Total loan cost

Full cost of the loan.

Excel form for calculating the total cost of the loan - download

As you have already seen, comparing loans is a rather labor-intensive and time-consuming undertaking. In addition, in order to compare conditions, for example, on mortgage loans from different banks, you need to have a fairly good understanding of not only lending, but also insurance, and also be a good lawyer. To simplify the procedure, the Central Bank of Russia introduced the concept of “full cost of credit” (previously the concept of “effective interest rate” was introduced). For deposits, the concept of the full value of the deposit can be used.

Formula for calculating the total cost of the loan

as follows:

, Where

d i — date of the i-th payment;
d 0 - date of initial payment - is the date of transfer of funds to the borrower;
n — number of payments;
DP i is the amount of the i-th payment under the loan agreement.
multidirectional payments are reflected with different mathematical signs. Thus, the payment of loan funds to the borrower is reflected with a minus sign, the return of funds and commission payments are reflected with a positive sign;
PSK - the total cost of the loan, reflected in % per annum

When determining the full cost of the loan, all payments associated with the issuance of the loan (commission for issuance, consideration of the application, etc.) are reflected in the initial payment.

What is included in calculating the total cost of the loan:

1. Exactly known payments under the loan agreement, which are payments related to the conclusion and execution of the loan agreement:

to repay the principal amount of the loan;

on payment of interest on the loan;

fees and commissions for drawing up a loan agreement, considering a loan application, issuing loan funds, opening and maintaining an account;

commissions for cash settlement and operational services

if the payment is made on a loan on a bank card - fees for issuing and annual servicing of credit cards

2. Payments to third parties, if the obligation to pay these payments arises from the conclusion of a loan agreement

insurance of real estate or vehicles
payments to notary offices and notaries
valuation of property pledged as collateral

The calculation of the full cost of the loan does not include

payments by the borrower that do not arise from the loan agreement, but from the requirements of Russian legislation. For example, to apply for a car loan, this will be compulsory motor liability insurance, which must be concluded in any case;

payments related to the borrower’s failure to comply with the terms of the loan agreement. For example, late payments;

the borrower's payments on the loan, which depend on the borrower's decision or on his behavior. For example, a commission for early repayment, a commission for receiving funds in cash, a fee for providing information about the status of the debt.

If the loan agreement provides for different types of loan accruals depending on the borrower’s decision, the calculation of the full loan amount is calculated based on the maximum possible loan amount (overdaft limit), loan term, and equal payments under the loan agreement.

Calculation example:

Basic loan terms:

date	Interest payment	Principal payment	Commissions and other payments	Remainder debt at the end months
01.01.2011	— 50 000,00
31.01.2011	833,33	4 166,67	1 500,00	45 833,33
28.02.2011	763,89	4 166,67	500,00	41 666,67
31.03.2011	694,44	4 166,67	500,00	37 500,00
30.04.2011	625,00	4 166,67	500,00	33 333,33
31.05.2011	555,56	4 166,67	500,00	29 166,67
30.06.2011	486,11	4 166,67	500,00	25 000,00
31.07.2011	416,67	4 166,67	500,00	20 833,33
31.08.2011	347,22	4 166,67	500,00	16 666,67
30.09.2011	277,78	4 166,67	500,00	12 500,00
31.10.2011	208,33	4 166,67	500,00	8 333,33
30.11.2011	138,89	4 166,67	500,00	4 166,67
31.12.2011	69,44	4 166,67	500,00	0,00
Total	5 416,67	50 000,00	7 000,00	0,00

In this example, the total cost of the loan was 55,49 %

As you can see, the total cost of the loan may differ greatly from the interest rate stated and advertised by the bank.

In addition, it should not be confused with such a concept as an increase in the cost of a loan, which largely depends not on the interest rate, but on the loan term.

The full cost of the loan is quite difficult to calculate using a calculator, but Excel can be a huge help in calculating it. In spreadsheets, this calculation is implemented using the IRR (internal rate of return) function. If you need to compare several programs, download the Excel form to calculate the total cost of the loan.

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