how can i calculate Principal and Interest together?
My loan is $110,000, Fixed rate =4.99%, 30 years, (3 years fixed)
they say, 36 monthly repayments of $589. 84, followed by
324 monthly repayments of $617.7, (rate reverting to 5.43% aftr 3 yrs)
total amount of repayments will be $221,369.04 and total amount of interest charges you will have to pay is $111,369.04.
from what i know, I = PRT, ie. $110000*.0499*3 = $16467 (3 yrs), and $110000*.0543*27=$161271 interest for 27 years, but above calc. is confusing to me,
so i don't understand the way bank is calculating, can someone pls break it down and explain in simple form, thank you very much.
Every bank website has a repayment calculator that you can look at. The rate will go to the standard variable so i wouldnt be worried about what its saying you pay back after the initial 3 years because 100% sure it won't be the current variable interest rate at the time.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
http://www.stgeorge.com.au/help/calculators hope this helps
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Newbeez,
You will find that your interest figures are way off. The reason being is that the interest on P&I repayments is not a constant figure across the loan term as it is calculated on the outstanding principal, and with each payment the principal decreases, and therefore so will the interest that is paid.
Like the Dark Knight suggests, the easiest way is to use an online calculator. Here's one which you can use, its a honeymoon calculator but for all intent and purposes you can use it for your situation for the above scenario. You can click on the amortisation tab to see the interest paid each month.
http://www.visionabacus.com.au/w1/calculators/main/afgonline/HoneymoonLoan.html
Cheers
Tom
Thank you very much for your reply guys. Appreciate it.
I use a spreadsheet and put in a date column and interest column and a payment column and a interest charged column. And a balance column
then in the row calculate the interest charged for the days elasped.
date interest payment interest charge balance
1/07/2013 4.99 110,000
14/07/2013 4.99 589. 84 $$$$$$$$$$$ #######
$$$$ = 13 days of interest so divide 4.99 by 100 and divide it by 365 or it might be 360 check with bank how daily interest rate is calculated
multiply balance by daily interest rate by 13 days
at end of month another similar calculation is required
13 days of interest so divide 4.99 by 100 and divide it by 365 or it might be 360 check with bank how daily interest rate is calculated
multiply balance by daily interest rate by 13 days
##### = previous balance + interest charged – payment (leave the payment column empty)
then copy the rows and alter the date row to add +1 to advance the month in the first row and then copy it down the rows and alter the dates if incorrect.
at the end of the rows you can sum up the payemnts and interest charged.
Hi duckster,
I followed what you instructed, Is the calculation you advise is for fortnight? it is what i am looking for, sorry i m still having some issues,
so interest charge ($$$)= 0.0499 /365 = 0.0001367 (daily interest ), balance = ($110000-$589.94 =$109,411)
$109,411*0.0001367*13 = $194.45 ( Is this the interest amount?)
Second part
end of month,
0.0499/365 = 0.0001367,
$109,411 * 0.0001367*13 = $194.45
####= pervious balance + interest charged – payment
$109,411= $110000+$194.45 – $589.84
i didn't get this part as well as copying the rows and altering date, also is it possible if you can send me the spread sheet calculation of my loan amount that i have mentioned above please? then i can see how you did it and learn that way.
my email is [email protected]
Thank you
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