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  • Profile photo of karlm63karlm63
    Participant
    @karlm63
    Join Date: 2005
    Post Count: 68
    September 9, 2008 - 11:01 am

    Hi,

    I am trying to work out what sort of interest I pay on my investment I/O loan.

    Is the formula for an example……

    $200,000 * 9.07% / 365= $49.69 Daily Interest ??????????

    I am using the above formula and there is a variation to what the banks takes out and what I calculate for the month !!!!!!!!!!!!!!!!

    Can someone advise please.

    Thanks in advance

    karlm

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 9, 2008 - 12:02 pm

    That seems correct. Remember 366 days in leap years and same months are 31 days, so interest each month will vary.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of MortgagePlusMortgagePlus
    Member
    @mortgageplus
    Join Date: 2008
    Post Count: 83
    September 10, 2008 - 6:43 am

    I agree. That is the correct formula. Just remember, you will need to work it out on the actual daily balance, and allow for any balance changes throughout the month. Other than that, if your figures do not line up with the bank then hit them up.

    Good luck.

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