All Topics / Help Needed! / Principle & Interest Repayment Calcs

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Big CatBig Cat
    Participant
    @big-cat
    Join Date: 2010
    Post Count: 4
    November 10, 2012 - 3:27 am

    Hi All,

    First time post and hoping someone can help me.

    Does anyone know the calculations that are used to work out principle and interest repayments by the banks?

    Is there a set formula or % used to find out how much principle and also interest you'll pay each month for the

    term of you loan ?

    Obviously a lot of things can change over this period (interest rates, lump sum deposits etc.) but am just curious

    as to the method used to determine the amount of both principle and interest paid each month for a set period.

    I have looked at plenty of the online calculators and have wondered how they are actually calculated.

    Thanks

    BIG CAT

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    November 10, 2012 - 4:44 am

    Hi big cat

    Welcome to the Forum.  We hope you'll enjoy your time here.

    What you need is an amortisation calculator.  There is a good one here:

    http://www.mortgageworldaustralia.com.au/calculators/amortisation_calculator.htm

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of Big CatBig Cat
    Participant
    @big-cat
    Join Date: 2010
    Post Count: 4
    November 10, 2012 - 5:59 am

    Hi Paul,

    Thanks a lot for that link. That calculator is exactly what I was looking for.

    What a great way to gain information, I will be using these forums more and more!

    Big Cat

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    November 10, 2012 - 11:25 am

    If all else fails you can use the financial formulas in excel to do the dirty work for you.

    Look at Formulas/financial/pmt

    =pmt(rate,nper,pv,fv) will return what your repayments will be. Remember to keep your units uniform ie interest rate if annual, then keep no. of periods as years or interest as monthly rate then the number of months of the loan.

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    November 11, 2012 - 1:50 am

    Go to this thread

    https://www.propertyinvesting.com/forums/finance/4346478

    plenty of spreadsheet tools you can play with there from the simple to the complex.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 11, 2012 - 10:43 am

    THere is a a template in excel too.

    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

Viewing 6 posts - 1 through 6 (of 6 total)

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