How to calculate a loan payment and APRC
- 1.
Enter amount and term
Type the amount you want to receive and the number of monthly payments.
- 2.
Add the rate and fees
Enter the nominal interest rate, the arrangement fee, any one-off insurance (as a percentage of the amount) and any fixed monthly fee from the offer.
- 3.
Choose how fees are paid
Leave the switch on if the fee and insurance are added to the loan, or turn it off if you pay them yourself when the money is paid out.
- 4.
Compare the APRC
Read the installment, total cost and APRC. When comparing lenders, look at the APRC and the total amount payable, not just the monthly payment.
How the payment and APRC are calculated
Equal installment: P = L × r / (1 − (1 + r)−n), where L is the amount borrowed (including the fee if it is financed), r the annual rate divided by 12 and n the number of payments. With decreasing installments you repay L / n of principal each month plus interest on the remaining balance.
The APRC (annual percentage rate of charge, in Polish RRSO) is the yearly rate X that makes the money you actually receive equal to the present value of everything you pay back:
amount received = Σ paymentk / (1 + X)tk, where tk is the time of payment k in years (k/12).
There is no closed formula, so the calculator solves it numerically. It includes interest, the arrangement fee, one-off insurance and a fixed monthly fee. Months are treated as equal twelfths of a year, so the result can differ slightly from the APRC in a contract based on exact dates.
Example: PLN 20,000 over 3 years
| 36 payments at 10% | Payment | Total cost | APRC |
|---|---|---|---|
| No fees | PLN 645.34 | about PLN 3,232 | 10.47% |
| 5% fee added to the loan | PLN 677.61 | about PLN 4,394 | 14.24% |
| 5% fee + 3% insurance, both financed | PLN 696.97 | about PLN 5,091 | 16.50% |
A 5% fee adds only about PLN 32 to the monthly payment, yet the APRC jumps by almost 4 percentage points. A low installment does not mean a cheap loan - which is exactly why lenders in Poland and the rest of the EU must show the APRC in every ad and contract.
For a larger loan of PLN 50,000 over 60 months at 9%, the payment is PLN 1,037.92 without fees (APRC 9.38%); a 6% financed fee pushes it to PLN 1,100.19 and the APRC to about 12.15%.
Your rights with a consumer loan in Poland
- Interest cap - under the Civil Code, contractual interest may not exceed twice the statutory interest rate (the NBP reference rate plus 3.5 percentage points).
- Cap on non-interest costs - fees, commissions and insurance are limited by article 36a of the Consumer Credit Act (ustawa o kredycie konsumenckim).
- 14-day withdrawal - you can withdraw from a consumer loan agreement within 14 days of signing it, without giving a reason.
- Early repayment - if you repay early, the total cost of credit is reduced proportionally, including fees paid upfront. See how much an extra payment saves in the loan overpayment calculator.
Lenders also check your credit history in BIK (the Polish credit bureau) and your borrowing capacity. If you are new to Poland and have no BIK history yet, expect stricter conditions. You can estimate the maximum amount in the borrowing capacity calculator; for a home loan use the mortgage calculator for Poland.
Frequently asked questions
What is the APRC (RRSO)?
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The annual percentage rate of charge - the total cost of the loan (interest, fees, insurance, other charges) expressed as a yearly rate. Lenders must state it in ads and contracts; the lower the APRC, the cheaper the loan.
What is the monthly payment on PLN 20,000 over 36 months?
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At 10% with equal installments it is PLN 645.34. With a 5% fee added to the loan it is PLN 677.61 and the APRC rises to about 14.24%.
Why is the APRC higher than the interest rate?
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Because it also includes fees and charges and reflects monthly repayment. Even with no fees, a 10% nominal rate gives an APRC of about 10.47% due to compounding.
Should I add the arrangement fee to the loan?
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Financing the fee is convenient, but you pay interest on it. Paying it from your own money lowers the installment and the total cost, although the APRC is similar in both cases.
Does the calculator include insurance?
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Yes. Enter one-off insurance as a percentage of the amount and any monthly fee added to the installment. Both are included in the total cost and the APRC.
Can I cancel a loan after signing in Poland?
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Yes. You can withdraw from a consumer loan agreement within 14 days of signing without giving a reason. You repay the amount received plus interest for the days you used the money.
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