This assumption allows for a smooth graph and equal repayment amounts. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. In practice, repayments are rounded to at least the nearer cent. This implicitly assumes that a year has 364 days rather than the actual 365 or 366. One year is assumed to contain exactly 52 weeks or 26 fortnights. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month. The calculations are done at the repayment frequency entered, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.Īll months are assumed to be of equal length. This feature is only enabled for the products that support an extra repayment. This is if repayments are increased by the entered amount of extra contribution per repayment period. The Equipment Finance Calculator also calculates the time saved to pay off the loan and the amount of interest saved based on an additional input from the customer. The Product selected determines the default interest rate for personal loan product. The Equipment Finance Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate.
