In plain words
An annuity payment means you pay the bank the same amount every month, from the first month to the last. Most loans and mortgages in Russia work this way (аннуитетный платёж, annuitetny platezh): it makes budgeting easy.
Each payment has two parts: interest for the month and repayment of the principal. Interest is charged on the outstanding balance. At the start the balance is large, so almost the whole payment goes on interest. Each month the debt shrinks, so does the interest, and the share that repays the debt grows. The total payment stays the same.
Formula
The bank calculates the payment like this:
Payment = S × i / (1 − (1 + i)−n)
- S — the loan amount;
- i — the monthly rate: the annual interest rate divided by 12 and by 100;
- n — the term in months.
Interest for a given month = outstanding balance × i. Everything in the payment above that interest reduces the debt.
Calculate it yourself
Change the numbers and the step-by-step calculation updates instantly. Russian rules for 2026.
Worked example
A loan of 500,000 ₽ for 3 years (36 months) at 18% a year. The monthly rate is 18 / 12 / 100 = 0.015.
500,000 × 0.015 / (1 − 1.015−36) ≈ 18,076.20 ₽
| Month | Payment | Interest | Principal |
|---|---|---|---|
| 1st | 18,076.20 ₽ | 7,500.00 ₽ | 10,576.20 ₽ |
| 36th | 18,076.20 ₽ | 267.14 ₽ | 17,809.06 ₽ |
Over the whole term you will pay about 650,743 ₽, of which the overpayment is roughly 150,743 ₽. In the first month 41% of the payment goes on interest; in the last, less than 2%. To work out your own case and see the full repayment schedule, use the loan calculator or the mortgage calculator.
Annuity or differentiated payment
With a differentiated payment the debt is repaid in equal parts and interest is charged on the balance. The first payments are larger and the last ones smaller, and the total interest is lower. But you have to be able to afford the high first payment, and the bank may approve a smaller amount. An annuity gives an even burden, but the total interest is higher.
How to avoid mistakes
- Don't compare loans by the payment alone. A longer term makes the payment smaller, but the overpayment grows. Look at the full cost of credit (ПСК, PSK) and the total amount.
- Repay early at the start of the term. That is when the payment contains the most interest, so early repayment saves the most.
- Choose what to reduce. With early repayment you can usually shorten the term or lower the payment. Shortening the term generally saves more.
- Don't expect the payment to get cheaper on its own. With a fixed rate the annuity stays the same until the end, even when the debt is almost paid off.
In Russia, Kazakhstan and Belarus
Russia
Almost all consumer loans and mortgages in Russia are calculated this way. Under the consumer credit law, the bank must show you the payment amount and the schedule before you sign the contract.
Kazakhstan
In Kazakhstan the bank must let the borrower choose between annuity and differentiated repayment and show the schedules for both.
Belarus
In Belarus the annuity is also the most common method: the bank sets out the payment schedule in the loan agreement.
Sources: Federal Law No. 353-FZ on Consumer Credit (Loans) («О потребительском кредите (займе)»), Bank of Russia financial literacy website «Финансовая культура» (Financial Culture)