Calculation of daily interest

Andrea75

Hi all,

I've tried several times to try and work out how to calculate my daily rate of mortgage interest...but simply can't!!

Can anyone please enlighten me so I can start making plans on attempting to make overpayments and hopefully see my balance slowly but surely reduce.

Thank you peeps.

Andrea

andy_vip

What are the figures?

I would use your principal amount times the percentage rate divided by 365.

So for eg,

Prinicpal sum borrowed £10'000
Annual rate 4.5%

10'000*0.045 = £450

That is how much you would pay in a year if you paid nothing off the principal.

Divide that by 365 gives £1.23 a day.

Fairly crude but works for a set amount.

If you want to see the difference overpayments make why don't you use the overpayment calculator on this site?

CLAPTON

if the interest rate is 4.5% then the daily rate would be approximately
4.5%/365 = 0.01232% per day

martinsurrey

if the interest rate is 4.5% per year (with intereset calculated annualy)
then the daily rate is
1.045^(1/365) - 1 = 0.0001206 = 0.01206% per day.

the above percentage is accurate to 5p per £100k per year.

CLAPTON

martinsurrey wrote: »

if the interest rate is 4.5% per year (with intereset calculated annualy)
then the daily rate is
1.045^(1/365) - 1 = 0.0001206 = 0.01206% per day.

the above percentage is accurate to 5p per £100k per year.

yes or no depending upon how one plans to use the rate

toerag33

This is a question I would also like help with as I know my annual mortgage statement is wrong. I wish to work out the figures myself and send in my letter of complaint because of the response I received the previous year when it was also wrong.

My interest rate is 2.94% and calculated daily. Can you tell me what the figure is I use to calculate the figures please.

Apologies Andrea75 for butting in on your thread.

Thank-you

toerag33

CLAPTON

toerag33 wrote: »

This is a question I would also like help with as I know my annual mortgage statement is wrong. I wish to work out the figures myself and send in my letter of complaint because of the response I received the previous year when it was also wrong.

My interest rate is 2.94% and calculated daily. Can you tell me what the figure is I use to calculate the figures please.

Apologies Andrea75 for butting in on your thread.

Thank-you

toerag33

not enough information to work anything out

give us the full figures you're concerned about