All Topics / General Property / Helpful repayment formula

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  • Profile photo of TruskaTruska
    Join Date: 2003
    Post Count: 20

    Hi all

    I’m not sure if this has been posted before.

    Here’s a formula I use to quickly calcute how much a loan is going to cost me to repay with respect to actual weekly repayments. It really helps if you’re looking at a property and need to quickly calculate your outgoings.

    The formula works using the following parameters

    Interest rate 6.75%
    Term 30yrs (360 monthly repayments)

    You take your purchase price
    Divide by 1000
    multiply by 1.5 (or add 1/2 of this amount)
    this equals your weekly repayment.

    If you take this figure,mutiply by 52, then divide by 12, you will be within a few dollars of the banks monthly repayments

    eg purchase price
    divided by 1000 = $80
    multiply by 1.5 = $120 (or add $40 to your $80)
    weekly out of pocket repayment is $120
    x 52 =$6240
    divided by 12 =$520

    Bank figure is $518.88
    for $300 000

    weekly repay is $450 = $1950pm
    bank figure is$1945.79

    The result is always a bit over, but at least it helps make a quick on-the-spot decision re cash flow


    Profile photo of BillfromozBillfromoz
    Join Date: 2003
    Post Count: 381

    G’ay Truska…

    Well done!

    Have you also done a multiplyer for 7%-9%?
    What about 15,20 and 25 years?

    Be interested if you have…if not a little job for you.



    Bill O’Mara
    Real Estate,Mortgages,Share Market Strategies.
    [email protected]

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