Calculating interest on overdue payments

Lisa1978

Hello


I would appreciate if anyone can advise if I have calculated the outstanding interest correctly.


The original debt of £583,500 was on 1st October.
Balance today £128,500 after receiving irregular payments of £455k.


Thank you.


Payment DateAmountOutstanding Balance Days Overdue from 1st Oct 18Interest Due 01/10/2018£15,000.00£583,500.00017/10/2018£10,000.00£573,500.0016£2,136.8802/11/2018£10,000.00£563,500.0033£4,330.4619/11/2018£10,000.00£553,500.0050£6,444.8607/01/2019£70,000.00£483,500.0099£11,146.9921/01/2019£15,000.00£468,500.00113£12,328.6111/02/2019£15,000.00£453,500.00134£14,151.6828/02/2019£15,000.00£438,500.00151£15,419.5819/03/2019£10,000.00£428,500.00170£16,963.9022/03/2019£10,000.00£418,500.00173£16,860.3925/03/2019£10,000.00£408,500.00176£16,742.9026/04/2019£10,000.00£398,500.00208£19,302.6807/05/2019£20,000.00£378,500.00219£19,303.5021/05/2019£250,000.00£128,500.00233£6,972.45Total Paid£657,500.00£128,500.00£162,104.90£33,604.90

Lisa1978

Apologies the table has not shown correctly.


Below are dates payments received and amounts :


Payment DateAmount
01/10/2018 £15,000.00
17/10/2018 £10,000.00
2/11/2018 £10,000.00
19/11/2018 £10,000.00
07/01/2019 £70,000.00
21/01/2019 £15,000.00
11/02/2019 £15,000.00
28/02/2019 £15,000.00
19/03/2019 £10,000.00
22/03/2019 £10,000.00
25/03/2019 £10,000.00
26/04/2019 £10,000.00
07/05/2019 £20,000.00
21/05/2019 £250,000.00


Using 8.5% rate = Interest due £33,605?

dreaming

Hi Lisa. How are you making this calculation? Having just done a rough and ready calc. I make it just over 27k interest but it was very rough and ready and I am in need of more tea right now.

Lisa1978

dreaming wrote: »

Hi Lisa. How are you making this calculation? Having just done a rough and ready calc. I make it just over 27k interest but it was very rough and ready and I am in need of more tea right now.

Many thanks for your reply. I have never had to do this before so it's a total guesstimate of amount due x 8.5%/365 x over due days. I would really appreciate if you could advise. Thank you and enjoy your tea

dreaming

Thanks Lisa - just finished the tea so nearly human now. I actually did the calculation to see if I could still do it as this sort of thing used to be my daily job several years ago.

I worked on the basis that the original loan was due by the end of September 2018. A payment was made on 01/10/18 so 1 day interest on the full amount is 135.88 (583,500 x 8.5% x 365/1). Then as each payment was made the same calculation is made for the relevant number of days the balance stayed the same. The last payment received was on 21/05/19 leaving the current outstanding balance of 113,500. So interest on this (up to today) is 1,850.21.

I have had to make some asumptions, and don't have anyone to check my figures as I had at work (you can rarely see your own mistakes) the final total (to date) is £27,527.31.

Maybe there is someone else who could confirm the figures , or not as the case may be. I hope this helps and I was pleased to know the old brain is till creaking along.

Lisa1978

dreaming wrote: »

Thanks Lisa - just finished the tea so nearly human now. I actually did the calculation to see if I could still do it as this sort of thing used to be my daily job several years ago.

I worked on the basis that the original loan was due by the end of September 2018. A payment was made on 01/10/18 so 1 day interest on the full amount is 135.88 (583,500 x 8.5% x 365/1). Then as each payment was made the same calculation is made for the relevant number of days the balance stayed the same. The last payment received was on 21/05/19 leaving the current outstanding balance of 113,500. So interest on this (up to today) is 1,850.21.

I have had to make some asumptions, and don't have anyone to check my figures as I had at work (you can rarely see your own mistakes) the final total (to date) is £27,527.31.

Maybe there is someone else who could confirm the figures , or not as the case may be. I hope this helps and I was pleased to know the old brain is till creaking along.

Thanks a mill! I am excluding the first £15k payment as it was due and paid on 1st October. The balance outstanding today is £128,500 not £113,500. Can you give it another go based on this? Thanks again!

dreaming

Oh ok - your first post has made the formatting go a bit skew-whiff on my laptop so I missed the bit about the first payment. That actually reduces the interest to 26.272.22 according to my calcs. which are as follows (I'm not sure how to do a cut and paste into this so am just listing the periods between payments, IYSWIM)

period 1

Lisa1978

dreaming wrote: »

Oh ok - your first post has made the formatting go a bit skew-whiff on my laptop so I missed the bit about the first payment. That actually reduces the interest to 26.272.22 according to my calcs. which are as follows (I'm not sure how to do a cut and paste into this so am just listing the periods between payments, IYSWIM)

period 1

Thanks a mill however the periods didn't list

dreaming

Hope you can see them now - got a bit trigger-happy.

If you want to private message me I could send you the spread sheet to your own e-mail, but hopefully you can work out what I hac=ve done.

dreaming

have pm
'd. you

Lisa1978

Thank you for your PM. Unfortunately it won't let me respond there!
The difference is in number of days in our calculations.

IE on 7th January, £70k paid and I have used 99 days (from 1st October) whereas your days is 14. Can you please explain? I assumed it was from the previous payment before 7th January, ie 19th November but that is more than 14 days. Thanks