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Interest v repayment - Help needed
mick_1967
Posts: 55 Forumite
How do you work out how much you pay eg:
£100k mortage on interest only at 5% = £5000 / 12 = £416.66 per month.
How can I manually work out on £100k at 5% on a repayment mortage? I know there are tools avaialble, just wondered how to calculate myself the increased amount from interest only to repayment.
Cheers Mucho.
£100k mortage on interest only at 5% = £5000 / 12 = £416.66 per month.
How can I manually work out on £100k at 5% on a repayment mortage? I know there are tools avaialble, just wondered how to calculate myself the increased amount from interest only to repayment.
Cheers Mucho.
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Comments
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Here's an example I dug up from the inter-google...replace with your figures - note that "^-25" means "to the power of -25", which you'll find on any advanced calculator.
Suppose a Building Society lends £50,000 over 25 years and charges a borrower 6% pa compounding annually. What is the monthly repayment?
The annual payment is: -
50,000 x (0.06 / (1 - (1 + 0.06)^-25) = £3,911.34 per annum.
Dividing by 12 gives us £325.94 per month.0 -
monthly amount = (r / (1-(1+r)^-N))P
r = monthly interest rate
N = number of monthly payments
P = amount borrowed
or something like that - you can see why there are tools and spreadsheet functions to do it for you.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
monthly amount = (r / (1-(1+r)^-N))P
r = monthly interest rate
N = number of monthly payments
P = amount borrowed
or something like that - you can see why there are tools and spreadsheet functions to do it for you.
It was virtually impossible when there was tax relief on the first 30k!!!:eek::D0 -
ta - i dont have an scientific calculator to hand and was trying to work it out on a basic calc and having no joy.0
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There's an advanced calculator on your computer - open Calculator tool under Start>Programs>Accessories, click View than choose Scientific, I'm assuming you're not using a Mac....:Dta - i dont have an scientific calculator to hand and was trying to work it out on a basic calc and having no joy.0 -
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getmore4less wrote: »
Agreed for one-offs, though the formula is nice to have on a spreadsheet as you can then put in lots of different inputs (different % and term) and compare the answers neatly in different rows....0
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