About the Calculator

The financial calculator determines the required repayment amount and frequency based on the loan parameters entered, namely the amount, term, and interest rate. The selected product determines the default interest rate for the personal loan. The financial calculator also calculates the time saved in repaying the loan and the amount of interest saved based on additional information provided by the customer. This applies if the payments are increased by the entered amount of the additional payment per repayment period. This feature is enabled only for products that support additional payments. Calculations are performed at the specified repayment frequency, based on the initial loan parameters entered—namely, the amount, the annual interest rate, and the term in years.

Calculator Assumptions

Length of the Month

All months are assumed to be the same length. In reality, many loans are calculated on a daily basis, resulting in a variable number of interest days depending on the number of days in the month in question.

Number of Weeks or Fortnights in a Year

A year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days instead of the actual 365 or 366 days.

Rounding of Each Payment Amount

In practice, payments are rounded to the nearest cent. However, the calculator uses the unrounded payment amount to calculate the interest payable at certain points on the graph and the total interest over the entire term of the loan. This assumption results in a smooth graph and equal payment amounts. Note that the final payment amount increases after the payment amount is raised.

Rounding of Time Saved

The time saved is presented as a number of years and months, fortnights, or weeks, depending on the chosen repayment frequency. The calculation of the savings is based on the assumption of a possible final partial repayment.

Amount of Interest Saved

This amount can only be calculated approximately based on the time saved and the details of the original loan.

Calculator Disclaimer

The results of this calculator are for informational purposes only. The results do not constitute quotes or prequalifications for the product. Each financial institution uses different formulas. Information such as the interest rates cited and the default figures used in the assumptions are subject to change.