The Mortgage Loan Calculator and Amortization Table calculates the type of repayment required, at the frequency requested, based on the loan parameters entered, including the loan amount, term, and interest rate. The selected product determines the default interest rate for the mortgage loan product. This calculator also calculates the time saved to pay off the loan and the amount of interest saved if repayments are increased by the entered extra contribution per repayment period. This feature is only available for products that support extra repayments. The calculations are performed at the selected repayment frequency based on the original loan parameters entered, including the loan amount, annual interest rate, and term in years.
Calculator Assumptions
Length of Month
All months are assumed to be of equal length. However, in reality, many loans accrue on a daily basis, leading to varying days of interest dependent on the number of days in a particular month.
Number of Weeks or Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights, which assumes a year has 364 days instead of the actual 365 or 366 days.
Rounding of Repayment Amount
In practice, repayments are rounded to the nearest cent. However, the calculator uses the unrounded repayment to determine the interest payable at various points along the loan and the total interest over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after an increase in the repayment amount may be rounded.
Rounding of Time Saved
The time saved is presented as a number of years, months, fortnights, or weeks, based on the selected repayment frequency. It takes into account the potential for a partial last repayment when calculating the savings.
Amount of Interest Saved
The amount of interest saved can only be estimated based on the time saved and the original loan details.
Calculator Disclaimer
The results from this calculator should be used for informational purposes only and do not represent quotes or pre-qualifications for the product. Different formulas may be used by individual institutions. Interest rates and default figures used in the assumptions are subject to change.
