The loan calculator compares annuity and equal-principal schedules, a manually entered Euribor or other benchmark, bank margin, fees, a rate change and one partial prepayment. €10,000 over five years at 5% gives an annuity payment of €188.71. This is a scenario, not live Euribor or a credit offer.
Formula and variables
Payment M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r = annual rate / 12 / 100 i.e. the monthly rate, and n is the number of monthly payments. At a zero rate the formula reduces to M = P / n. Total interest = M × n − P.
Annuity and equal-principal are different schedules
With an annuity the monthly payment is level within each rate period, while the principal share grows and interest shrinks. In an equal-principal schedule the principal repaid is the same each month, so the payment starts higher and falls. At the same rate it costs less interest because the balance falls faster. The calculator builds either schedule and recalculates after a rate change or prepayment.
The nominal rate is not the total cost of credit
The nominal rate is interest only. The annual percentage rate of charge (KKM in Estonia) additionally includes the contract fee, account servicing and other mandatory costs, so it is always higher than the nominal rate. Offers should be compared by that figure, not by the nominal rate — two offers at the same rate can cost very differently once fees are counted.
The effect of the term
A longer term lowers the payment but raises total interest, because the money is used for longer. The same €10,000 at 5% costs about €1323 in interest over five years and almost twice that over ten. The payment falls far less than the total cost rises.
Euribor is entered manually
When a contract is tied to Euribor, the combined rate is the manually entered benchmark plus the bank margin. Check the value in your offer or a source you are entitled to use; the EMMI link opens the official publication page. 777.ee does not fetch or copy a live rate or present the example as today's Euribor.
Partial prepayment
A one-off extra payment reduces principal after the selected month's regular payment. This scenario keeps the original final month and lowers later payments. A contract may instead shorten the term or charge a fee, so confirm the choice and cost with the lender.
Scope and limitations
Entered contract and monthly fees are included in cost, but the result is not an APR. It excludes insurance, tax relief, payment holidays, a possible early-repayment fee and the lender's exact day-count method. The actual schedule may therefore differ and this is not a credit decision.
Examples
€10,000 at 5% for 5 years
n = 60, monthly rate r ≈ 0.0041667. Payment ≈ €188.71. Total paid 188.71 × 60 ≈ €11,323, of which interest ≈ €1323.
The same loan over twice the term
€10,000 at 5% over ten years: the payment falls to roughly €106, but total interest rises to about €2728. The payment drops 44% while the total cost more than doubles.
Interest-free instalments
At 0% the payment is simply P / n: €1200 over twelve months is €100 a month. Watch the contract fee — that is what makes the true cost of a “0%” offer greater than zero.
Sources
- EMMI — Euribor rates — official Euribor publication; the rate is entered manually
- Eesti Pank — interest environment and Euribor
- Financial Supervision Authority — total cost of credit, consumer credit requirements