Instruction
1
To find out the cost of servicing the loan portfolio, calculate the weighted average interest rate for all loans. Calculate the total amount of expenses for payment of percent for the year by multiplying the loan amount by the interest rate on each contract separately and adding the values. Divide the final value on the index credit volume of the company and multiply the quotient by 100.
2
To calculate the weighted average interest rates on loans and deposits use the formula proposed by the Central Bank of the Russian Federation:
Pav = (V1 x P1 + V2 x P2 + ... + Pn x Vn):(V1 + V2 + ... + Vn), where
V1, V2, ..., Vn – the volume of loans or deposits,
P1, P2, ..., PN is the nominal interest rate under the contract.
3
For the loans in different banks, and you have a large number of contracts for convenience, make calculations using the spreadsheet: in column A enter the loan amount, in column b – interest rate in the column, specify the formula for calculating the amount of annual interest (A x B), and in the lower part of the table or the formula to calculate totals for columns. In a separate cell, select the algorithm of calculating weighted average rates:
(Total column C / Total of column A) x 100.
4
If you do not know the interest rate in terms of contracts, but there is the total amount of expenses for payment of percent on credits, divide it by the total volume of credit mass and multiply by 100 - you will receive the average rate.
5
In addition, loan and Deposit transactions may be issued on terms of variable interest rates. In this case, its mean value is need to calculate taking into account the change of its value during the entire period of the contract. To do this, multiply the loan amount by the interest rate, divide by the number of days in the year (365 or 366), and multiply by the number of days in which it was applied. Calculate and add the interest charges for each rate, and then divide the total amount by the loan amount and multiply the result by 100.