How does the interest on your loan get calculated? I cant seem to work it out. My bank says interest is calculated on a daily basis and I pay the loan instalment every fortnight. But when I try to work it out I get a figure less then the bank charge me. What am I missing?
I just want to put the formula into a simple spreadsheet to help me evaluate deals. Can anyone help me put it together? Thanks
Hi Spoodle,
If you PM me with some details, I.E a couple of months of a statement, I’ll try and work it out for you. Different institutions have different ways of when and how they apply interest, so there is no simple answer. But I can generally figure it out.
Mal
Getting out of your comfort zone, can help you become comfortable
hi sP00dLe
get your hands on a calculator hp10 BII ( roman numerals last two letters)
with that you are using the same calculator as a lender and is very handy you can cal interest with no problem but returns and a whole lot of other things that will take a couple of pages of text.
the book it comes with is about an inch thick and I use mine daily.
has a long battery life also mines about 2 years old now.
you should find them cheap around the $40 mark as they are a specialist calc ring a hp reseller.
I could say don’t worry about interest worry about profit but I have seen to many negative statements this year already so I won’there to help
If you want to get involved in some of the projects I’m involved in email to [email protected]You have to work out the daily interest, and then times this by the number of days in the month.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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