Loan calculator
This free loan calculator works out the monthly payment on an annuity (equal-instalment) or differentiated (declining-instalment) loan. Pick the country (Georgia — lari, Azerbaijan — manat, Armenia — dram), enter the loan amount, annual interest rate, term in months and any one-off fee, and you'll see the monthly payment, total interest, total cost, an approximate effective annual rate and a month-by-month payment schedule. For Georgia you can add your net income to check the National Bank's payment-to-income (PTI) limit. Whether you're planning a car, home-repair, business or consumer loan, it helps you size the budget before you commit.
Georgia rules: Civil Code (50% effective-rate cap) and the National Bank of Georgia payment-to-income rule, verified 2026-10.
How the calculation works
The annuity payment uses the standard formula: payment = amount × monthly rate / (1 − (1 + monthly rate)^−term), where the monthly rate is the annual rate divided by 12. You pay the same amount every month, but early payments are mostly interest. With a differentiated schedule the principal is repaid in equal parts (amount / term) and interest is charged on the remaining balance, so the first payment is the largest, the last the smallest, and total interest is lower than with an annuity. The effective annual rate includes the fee: it is the rate that equates the cash you actually receive (amount − fee) with your payments, compounded to a yearly figure. Lenders must show the effective rate in their offer — compare loans on that number.
Worked example
Say you borrow 20,000 GEL (or AZN) at 18% per year over 24 months. As an annuity, the payment is about 998, total paid ~23,964 and total interest ~3,964. On a differentiated schedule the first payment is ~1,133, the last ~846, and total interest ~3,750. The effective annual rate is ~19.6% with no fee and ~20.8% with a 1% one-off fee. Insurance and other bank charges are not included — check the real terms with your bank.
Frequently asked questions
What is an annuity loan?
A loan repaid in equal instalments. Early payments are mostly interest; later ones are mostly principal.
Annuity or differentiated — which is cheaper?
A differentiated schedule costs less interest overall, but the first payments are higher. An annuity keeps the payment the same for the whole term, which is easier to budget. The calculator lets you compare both.
What is the effective rate and why is it higher than the nominal rate?
The effective (actual) annual rate includes fees and monthly compounding, so even a fee-free 18% loan works out to ~19.6%. Lenders in Georgia, Azerbaijan and Armenia state this rate in their offers — use it to compare loans.
Is there a cap on loan interest rates in Georgia?
Yes. Under Georgia's Civil Code the effective annual interest rate on a loan may not exceed 50%. Also, loans to individuals up to 400,000 GEL must be issued in lari (since May 2024).
How much can I borrow in Georgia on my income?
Under the National Bank of Georgia's rule, if your net monthly income is below 1,500 GEL your loan payments may not exceed 25% of it; from 1,500 GEL the limit is 50%. The threshold rises to 2,000 GEL on 1 February 2027 and 2,500 GEL on 1 September 2027. Enter your income in the calculator to check automatically.
How accurate is the result?
It uses standard formulas and is an estimate. Insurance, late charges and other bank costs aren't included.
How do I enter the rate and term?
Enter the annual rate as a percentage (e.g. 18) and the term in months (24 for 2 years). The tool converts the rate to monthly.
Is the tool free?
Yes — completely free and no signup. Bazarla is not an official or government site.