Help! Calculating Amigo Daily Interest

Durham_andrew

I’m overpaying On a mortgage with an interest rate of 2.14% I would not be able to sleep with one that steep

Lotak

MoneyPanda wrote: »

Hi all, as the title states, I'm trying to calculate the monthly interest for an Amigo loan. Now I have googled the subject to death, looked at the pinned threads on here, but I can't seem to calculate the interest correctly. I'm always £1 to £15 pound off.

My reason for this is to try and get a rough idea what the loan balance will be in a years time and then draw up a plan of action to get this paid off....quickly.

Here is typical month below...

Principle: £7,500
APR: 49.9%
Balance before Interest: £6,389.34
Interest Period: 01/07/18 to 31/07/18
Interest: £223.36
Balance after interest: £6,612.70
Repayment over 60 months.

Now when I try and figure this out myself I get...
Interest: £230.45
Balance after interest: £6,212.22

Now I'm in the same ballpark with the balance but my interest is way off. So my maths is really flawed. So I am hoping there is someone on here much smarter than me who can provide any help or material on how to correctly calculate this. Any help will be greatly appreciated. Many thanks in advance.

You need to tell us:
1) What your monthly payment is
2) How far you are in the loan (how many payments have you made?)

From my own calculations, it seems that your monthly payment is around £296.49 and that you've made 20 payments.
The reason you'll have a slightly different figure, is because Amigo will charge you interest daily (like most lenders), but your calculations are based on interest being accrued daily, but each month being 365/12 days. So when there are 31 days in a month, you'll be charged more interest by Amigo than your calculator would suggest, but when there 30 or fewer days in the month, you'll be charged less interest than the calculator would suggest.
That the absolute difference is relatively high is down to the interest rate.

MoneyPanda

Obviously my circumstances were much different 2 years ago and Amigo filled a purpose back then, one that I am regretting now. It is all well and said telling me to chuck everything at it but I've have nothing to chuck.

I think OP wants to see the value in black and white of what an overpayment will do and the amount of interest it will save. some people, like myself, need to see the impact it will have, not just throw everything at it and expect it to be cleared in 12 months.

It is exactly that.

Any who, I managed to work something out by working out percentage increases for 30 and 31 day months (they are pretty damn close in value) and then averaged them. Using these 2 values I was able to recreate the last 2 years worth of statements pretty accurately.

Thanks to everyone who contributed to helping me find a solution to this. Cheers