Repayment / Interest only question

Dick_here

I'm still not clear of how the figure of £644 is arrived at though. Can anyone explain that in simple terms ? I assume it relates to a 25 year repayment, but what's the calculation to make it £644 in this example ?

homer_j_3

its 100k over 25yr term at a 6% rate of interest

Dick_here

That's the £500pm interest only. What's the calculation to get the extra £144 to cover repayments ?

InMyDreams

!!!!!!_here wrote: »

That's the £500pm interest only. What's the calculation to get the extra £144 to cover repayments ?

Try going here and plugging in the numbers.

The actual calculation to arrive at this figure is very complicated.

HTH.

Dick_here

Thanks, that sounds like the best answer I'll get !

InMyDreams

!!!!!!_here wrote: »

Thanks, that sounds like the best answer I'll get !

LOL. Well if you really want the formula, it's something like

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]

M = monthly repayment
P = amount borrowed
i = monthly interest rate
n = term in months.

Honestly, using the on-line calculators to do it for you is much easier

Dick_here

Thanks guys. I think I get it at last !

Sticking to this example, paying £644 each month, £144 is coming off the capital outstanding during the first month, but slightly more than that comes off during the second month, and so on. That's what I'd got confuddled about somewhere along the line...

So in 6 years time, I will already have a reduced balance and can then pay a chunk off of that.

Gorgeous_George

The following list shows how much of your £644.30 is used to pay the interest and how much is left to reduce the ballance. As you can see, the amount owing is less each month therefore the interest is less. This means that a bit more of the £644.30 is used to reduce the amount owing.


Month..Owing...........Interest.......Repayment
0.... £100,000.00 .... £ 500.00 .... £ 144.30
1.... £ 99,855.70 .... £ 499.28 .... £ 145.02
2.... £ 99,710.68 .... £ 498.55 .... £ 145.75
3.... £ 99,564.93 .... £ 497.82 .... £ 146.48
4.... £ 99,418.45 .... £ 497.09 .... £ 147.21
5.... £ 99,271.24 .... £ 496.36 .... £ 147.95
6.... £ 99,123.30 .... £ 495.62 .... £ 148.68
7.... £ 98,974.61 .... £ 494.87 .... £ 149.43
8.... £ 98,825.18 .... £ 494.13 .... £ 150.18
9.... £ 98,675.01 .... £ 493.38 .... £ 150.93
10.... £ 98,524.08 .... £ 492.62 .... £ 151.68
11.... £ 98,372.40 .... £ 491.86 .... £ 152.44
12.... £ 98,219.96 .... £ 491.10 .... £ 153.20
13.... £ 98,066.76 .... £ 490.33 .... £ 153.97
14.... £ 97,912.79 .... £ 489.56 .... £ 154.74
15.... £ 97,758.05 .... £ 488.79 .... £ 155.51
16.... £ 97,602.54 .... £ 488.01 .... £ 156.29
17.... £ 97,446.25 .... £ 487.23 .... £ 157.07
18.... £ 97,289.18 .... £ 486.45 .... £ 157.86
19.... £ 97,131.33 .... £ 485.66 .... £ 158.64
20.... £ 96,972.68 .... £ 484.86 .... £ 159.44
21.... £ 96,813.25 .... £ 484.07 .... £ 160.24
22.... £ 96,653.01 .... £ 483.27 .... £ 161.04
23.... £ 96,491.97 .... £ 482.46 .... £ 161.84
24.... £ 96,330.13 .... £ 481.65 .... £ 162.65
25.... £ 96,167.48 .... £ 480.84 .... £ 163.46
26.... £ 96,004.02 .... £ 480.02 .... £ 164.28
27.... £ 95,839.74 .... £ 479.20 .... £ 165.10
28.... £ 95,674.63 .... £ 478.37 .... £ 165.93
29.... £ 95,508.71 .... £ 477.54 .... £ 166.76
30.... £ 95,341.95 .... £ 476.71 .... £ 167.59
31.... £ 95,174.36 .... £ 475.87 .... £ 168.43
32.... £ 95,005.93 .... £ 475.03 .... £ 169.27
33.... £ 94,836.66 .... £ 474.18 .... £ 170.12
34.... £ 94,666.54 .... £ 473.33 .... £ 170.97
35.... £ 94,495.57 .... £ 472.48 .... £ 171.82
36.... £ 94,323.74 .... £ 471.62 .... £ 172.68
37.... £ 94,151.06 .... £ 470.76 .... £ 173.55
38.... £ 93,977.52 .... £ 469.89 .... £ 174.41
39.... £ 93,803.10 .... £ 469.02 .... £ 175.29
40.... £ 93,627.82 .... £ 468.14 .... £ 176.16
41.... £ 93,451.65 .... £ 467.26 .... £ 177.04
42.... £ 93,274.61 .... £ 466.37 .... £ 177.93
43.... £ 93,096.68 .... £ 465.48 .... £ 178.82
44.... £ 92,917.86 .... £ 464.59 .... £ 179.71
45.... £ 92,738.15 .... £ 463.69 .... £ 180.61
46.... £ 92,557.54 .... £ 462.79 .... £ 181.51
47.... £ 92,376.03 .... £ 461.88 .... £ 182.42
48.... £ 92,193.61 .... £ 460.97 .... £ 183.33
49.... £ 92,010.27 .... £ 460.05 .... £ 184.25
50.... £ 91,826.02 .... £ 459.13 .... £ 185.17
51.... £ 91,640.85 .... £ 458.20 .... £ 186.10
52.... £ 91,454.76 .... £ 457.27 .... £ 187.03
53.... £ 91,267.73 .... £ 456.34 .... £ 187.96
54.... £ 91,079.76 .... £ 455.40 .... £ 188.90
55.... £ 90,890.86 .... £ 454.45 .... £ 189.85
56.... £ 90,701.02 .... £ 453.51 .... £ 190.80
57.... £ 90,510.22 .... £ 452.55 .... £ 191.75
58.... £ 90,318.47 .... £ 451.59 .... £ 192.71
59.... £ 90,125.76 .... £ 450.63 .... £ 193.67
60.... £ 89,932.09 .... £ 449.66 .... £ 194.64
61.... £ 89,737.45 .... £ 448.69 .... £ 195.61
62.... £ 89,541.83 .... £ 447.71 .... £ 196.59
63.... £ 89,345.24 .... £ 446.73 .... £ 197.58
64.... £ 89,147.66 .... £ 445.74 .... £ 198.56
65.... £ 88,949.10 .... £ 444.75 .... £ 199.56
66.... £ 88,749.55 .... £ 443.75 .... £ 200.55
67.... £ 88,548.99 .... £ 442.74 .... £ 201.56
68.... £ 88,347.44 .... £ 441.74 .... £ 202.56
69.... £ 88,144.87 .... £ 440.72 .... £ 203.58
70.... £ 87,941.29 .... £ 439.71 .... £ 204.59
71.... £ 87,736.70 .... £ 438.68 .... £ 205.62
72.... £ 87,531.08 .... £ 437.66 .... £ 206.65
73.... £ 87,324.44 .... £ 436.62 .... £ 207.68
74.... £ 87,116.76 .... £ 435.58 .... £ 208.72
75.... £ 86,908.04 .... £ 434.54 .... £ 209.76
76.... £ 86,698.28 .... £ 433.49 .... £ 210.81
77.... £ 86,487.47 .... £ 432.44 .... £ 211.86
78.... £ 86,275.60 .... £ 431.38 .... £ 212.92
79.... £ 86,062.68 .... £ 430.31 .... £ 213.99
80.... £ 85,848.69 .... £ 429.24 .... £ 215.06
81.... £ 85,633.63 .... £ 428.17 .... £ 216.13
82.... £ 85,417.50 .... £ 427.09 .... £ 217.21
83.... £ 85,200.29 .... £ 426.00 .... £ 218.30
84.... £ 84,981.99 .... £ 424.91 .... £ 219.39
85.... £ 84,762.59 .... £ 423.81 .... £ 220.49
86.... £ 84,542.11 .... £ 422.71 .... £ 221.59
87.... £ 84,320.52 .... £ 421.60 .... £ 222.70
88.... £ 84,097.82 .... £ 420.49 .... £ 223.81
89.... £ 83,874.00 .... £ 419.37 .... £ 224.93
90.... £ 83,649.07 .... £ 418.25 .... £ 226.06
91.... £ 83,423.02 .... £ 417.12 .... £ 227.19
92.... £ 83,195.83 .... £ 415.98 .... £ 228.32
93.... £ 82,967.51 .... £ 414.84 .... £ 229.46
94.... £ 82,738.04 .... £ 413.69 .... £ 230.61
95.... £ 82,507.43 .... £ 412.54 .... £ 231.76
96.... £ 82,275.67 .... £ 411.38 .... £ 232.92
97.... £ 82,042.75 .... £ 410.21 .... £ 234.09
98.... £ 81,808.66 .... £ 409.04 .... £ 235.26
99.... £ 81,573.40 .... £ 407.87 .... £ 236.43
100.... £ 81,336.97 .... £ 406.68 .... £ 237.62
101.... £ 81,099.35 .... £ 405.50 .... £ 238.80
102.... £ 80,860.54 .... £ 404.30 .... £ 240.00
103.... £ 80,620.55 .... £ 403.10 .... £ 241.20
104.... £ 80,379.35 .... £ 401.90 .... £ 242.40
105.... £ 80,136.94 .... £ 400.68 .... £ 243.62
106.... £ 79,893.33 .... £ 399.47 .... £ 244.83
107.... £ 79,648.49 .... £ 398.24 .... £ 246.06
108.... £ 79,402.43 .... £ 397.01 .... £ 247.29
109.... £ 79,155.14 .... £ 395.78 .... £ 248.53
110.... £ 78,906.62 .... £ 394.53 .... £ 249.77
111.... £ 78,656.85 .... £ 393.28 .... £ 251.02
112.... £ 78,405.83 .... £ 392.03 .... £ 252.27
113.... £ 78,153.56 .... £ 390.77 .... £ 253.53
114.... £ 77,900.03 .... £ 389.50 .... £ 254.80
115.... £ 77,645.22 .... £ 388.23 .... £ 256.08
116.... £ 77,389.15 .... £ 386.95 .... £ 257.36
117.... £ 77,131.79 .... £ 385.66 .... £ 258.64
118.... £ 76,873.15 .... £ 384.37 .... £ 259.94
119.... £ 76,613.22 .... £ 383.07 .... £ 261.24
120.... £ 76,351.98 .... £ 381.76 .... £ 262.54
121.... £ 76,089.44 .... £ 380.45 .... £ 263.85
122.... £ 75,825.58 .... £ 379.13 .... £ 265.17
123.... £ 75,560.41 .... £ 377.80 .... £ 266.50
124.... £ 75,293.91 .... £ 376.47 .... £ 267.83
125.... £ 75,026.08 .... £ 375.13 .... £ 269.17
126.... £ 74,756.91 .... £ 373.78 .... £ 270.52
127.... £ 74,486.39 .... £ 372.43 .... £ 271.87
128.... £ 74,214.52 .... £ 371.07 .... £ 273.23
129.... £ 73,941.29 .... £ 369.71 .... £ 274.59
130.... £ 73,666.70 .... £ 368.33 .... £ 275.97
131.... £ 73,390.73 .... £ 366.95 .... £ 277.35
132.... £ 73,113.38 .... £ 365.57 .... £ 278.73
133.... £ 72,834.65 .... £ 364.17 .... £ 280.13
134.... £ 72,554.52 .... £ 362.77 .... £ 281.53
135.... £ 72,272.99 .... £ 361.36 .... £ 282.94
136.... £ 71,990.06 .... £ 359.95 .... £ 284.35
137.... £ 71,705.70 .... £ 358.53 .... £ 285.77
138.... £ 71,419.93 .... £ 357.10 .... £ 287.20
139.... £ 71,132.73 .... £ 355.66 .... £ 288.64
140.... £ 70,844.09 .... £ 354.22 .... £ 290.08
141.... £ 70,554.01 .... £ 352.77 .... £ 291.53
142.... £ 70,262.48 .... £ 351.31 .... £ 292.99
143.... £ 69,969.49 .... £ 349.85 .... £ 294.45
144.... £ 69,675.04 .... £ 348.38 .... £ 295.93
145.... £ 69,379.11 .... £ 346.90 .... £ 297.41
146.... £ 69,081.70 .... £ 345.41 .... £ 298.89
147.... £ 68,782.81 .... £ 343.91 .... £ 300.39
148.... £ 68,482.42 .... £ 342.41 .... £ 301.89
149.... £ 68,180.54 .... £ 340.90 .... £ 303.40
150.... £ 67,877.14 .... £ 339.39 .... £ 304.92
151.... £ 67,572.22 .... £ 337.86 .... £ 306.44
152.... £ 67,265.78 .... £ 336.33 .... £ 307.97
153.... £ 66,957.81 .... £ 334.79 .... £ 309.51
154.... £ 66,648.30 .... £ 333.24 .... £ 311.06
155.... £ 66,337.24 .... £ 331.69 .... £ 312.62
156.... £ 66,024.62 .... £ 330.12 .... £ 314.18
157.... £ 65,710.44 .... £ 328.55 .... £ 315.75
158.... £ 65,394.69 .... £ 326.97 .... £ 317.33
159.... £ 65,077.37 .... £ 325.39 .... £ 318.91
160.... £ 64,758.45 .... £ 323.79 .... £ 320.51
161.... £ 64,437.94 .... £ 322.19 .... £ 322.11
162.... £ 64,115.83 .... £ 320.58 .... £ 323.72
163.... £ 63,792.11 .... £ 318.96 .... £ 325.34
164.... £ 63,466.77 .... £ 317.33 .... £ 326.97
165.... £ 63,139.80 .... £ 315.70 .... £ 328.60
166.... £ 62,811.20 .... £ 314.06 .... £ 330.25
167.... £ 62,480.95 .... £ 312.40 .... £ 331.90
168.... £ 62,149.05 .... £ 310.75 .... £ 333.56
169.... £ 61,815.50 .... £ 309.08 .... £ 335.22
170.... £ 61,480.27 .... £ 307.40 .... £ 336.90
171.... £ 61,143.37 .... £ 305.72 .... £ 338.58
172.... £ 60,804.79 .... £ 304.02 .... £ 340.28
173.... £ 60,464.51 .... £ 302.32 .... £ 341.98
174.... £ 60,122.53 .... £ 300.61 .... £ 343.69
175.... £ 59,778.85 .... £ 298.89 .... £ 345.41
176.... £ 59,433.44 .... £ 297.17 .... £ 347.13
177.... £ 59,086.30 .... £ 295.43 .... £ 348.87
178.... £ 58,737.43 .... £ 293.69 .... £ 350.61
179.... £ 58,386.82 .... £ 291.93 .... £ 352.37
180.... £ 58,034.45 .... £ 290.17 .... £ 354.13
181.... £ 57,680.32 .... £ 288.40 .... £ 355.90
182.... £ 57,324.42 .... £ 286.62 .... £ 357.68
183.... £ 56,966.74 .... £ 284.83 .... £ 359.47
184.... £ 56,607.28 .... £ 283.04 .... £ 361.27
185.... £ 56,246.01 .... £ 281.23 .... £ 363.07
186.... £ 55,882.94 .... £ 279.41 .... £ 364.89
187.... £ 55,518.05 .... £ 277.59 .... £ 366.71
188.... £ 55,151.34 .... £ 275.76 .... £ 368.54
189.... £ 54,782.80 .... £ 273.91 .... £ 370.39
190.... £ 54,412.41 .... £ 272.06 .... £ 372.24
191.... £ 54,040.17 .... £ 270.20 .... £ 374.10
192.... £ 53,666.07 .... £ 268.33 .... £ 375.97
193.... £ 53,290.10 .... £ 266.45 .... £ 377.85
194.... £ 52,912.25 .... £ 264.56 .... £ 379.74
195.... £ 52,532.51 .... £ 262.66 .... £ 381.64
196.... £ 52,150.87 .... £ 260.75 .... £ 383.55
197.... £ 51,767.32 .... £ 258.84 .... £ 385.46
198.... £ 51,381.86 .... £ 256.91 .... £ 387.39
199.... £ 50,994.47 .... £ 254.97 .... £ 389.33
200.... £ 50,605.14 .... £ 253.03 .... £ 391.28
201.... £ 50,213.86 .... £ 251.07 .... £ 393.23
202.... £ 49,820.63 .... £ 249.10 .... £ 395.20
203.... £ 49,425.43 .... £ 247.13 .... £ 397.17
204.... £ 49,028.26 .... £ 245.14 .... £ 399.16
205.... £ 48,629.10 .... £ 243.15 .... £ 401.16
206.... £ 48,227.94 .... £ 241.14 .... £ 403.16
207.... £ 47,824.78 .... £ 239.12 .... £ 405.18
208.... £ 47,419.60 .... £ 237.10 .... £ 407.20
209.... £ 47,012.40 .... £ 235.06 .... £ 409.24
210.... £ 46,603.16 .... £ 233.02 .... £ 411.29
211.... £ 46,191.87 .... £ 230.96 .... £ 413.34
212.... £ 45,778.53 .... £ 228.89 .... £ 415.41
213.... £ 45,363.12 .... £ 226.82 .... £ 417.49
214.... £ 44,945.64 .... £ 224.73 .... £ 419.57
215.... £ 44,526.06 .... £ 222.63 .... £ 421.67
216.... £ 44,104.39 .... £ 220.52 .... £ 423.78
217.... £ 43,680.61 .... £ 218.40 .... £ 425.90
218.... £ 43,254.71 .... £ 216.27 .... £ 428.03
219.... £ 42,826.69 .... £ 214.13 .... £ 430.17
220.... £ 42,396.52 .... £ 211.98 .... £ 432.32
221.... £ 41,964.20 .... £ 209.82 .... £ 434.48
222.... £ 41,529.72 .... £ 207.65 .... £ 436.65
223.... £ 41,093.07 .... £ 205.47 .... £ 438.84
224.... £ 40,654.23 .... £ 203.27 .... £ 441.03
225.... £ 40,213.20 .... £ 201.07 .... £ 443.24
226.... £ 39,769.96 .... £ 198.85 .... £ 445.45
227.... £ 39,324.51 .... £ 196.62 .... £ 447.68
228.... £ 38,876.83 .... £ 194.38 .... £ 449.92
229.... £ 38,426.92 .... £ 192.13 .... £ 452.17
230.... £ 37,974.75 .... £ 189.87 .... £ 454.43
231.... £ 37,520.32 .... £ 187.60 .... £ 456.70
232.... £ 37,063.62 .... £ 185.32 .... £ 458.98
233.... £ 36,604.64 .... £ 183.02 .... £ 461.28
234.... £ 36,143.36 .... £ 180.72 .... £ 463.58
235.... £ 35,679.78 .... £ 178.40 .... £ 465.90
236.... £ 35,213.87 .... £ 176.07 .... £ 468.23
237.... £ 34,745.64 .... £ 173.73 .... £ 470.57
238.... £ 34,275.07 .... £ 171.38 .... £ 472.93
239.... £ 33,802.14 .... £ 169.01 .... £ 475.29
240.... £ 33,326.85 .... £ 166.63 .... £ 477.67
241.... £ 32,849.18 .... £ 164.25 .... £ 480.06
242.... £ 32,369.13 .... £ 161.85 .... £ 482.46
243.... £ 31,886.67 .... £ 159.43 .... £ 484.87
244.... £ 31,401.80 .... £ 157.01 .... £ 487.29
245.... £ 30,914.51 .... £ 154.57 .... £ 489.73
246.... £ 30,424.78 .... £ 152.12 .... £ 492.18
247.... £ 29,932.61 .... £ 149.66 .... £ 494.64
248.... £ 29,437.97 .... £ 147.19 .... £ 497.11
249.... £ 28,940.86 .... £ 144.70 .... £ 499.60
250.... £ 28,441.26 .... £ 142.21 .... £ 502.10
251.... £ 27,939.16 .... £ 139.70 .... £ 504.61
252.... £ 27,434.56 .... £ 137.17 .... £ 507.13
253.... £ 26,927.43 .... £ 134.64 .... £ 509.66
254.... £ 26,417.77 .... £ 132.09 .... £ 512.21
255.... £ 25,905.55 .... £ 129.53 .... £ 514.77
256.... £ 25,390.78 .... £ 126.95 .... £ 517.35
257.... £ 24,873.43 .... £ 124.37 .... £ 519.93
258.... £ 24,353.50 .... £ 121.77 .... £ 522.53
259.... £ 23,830.96 .... £ 119.15 .... £ 525.15
260.... £ 23,305.82 .... £ 116.53 .... £ 527.77
261.... £ 22,778.04 .... £ 113.89 .... £ 530.41
262.... £ 22,247.63 .... £ 111.24 .... £ 533.06
263.... £ 21,714.57 .... £ 108.57 .... £ 535.73
264.... £ 21,178.84 .... £ 105.89 .... £ 538.41
265.... £ 20,640.43 .... £ 103.20 .... £ 541.10
266.... £ 20,099.34 .... £ 100.50 .... £ 543.80
267.... £ 19,555.53 .... £ 97.78 .... £ 546.52
268.... £ 19,009.01 .... £ 95.05 .... £ 549.26
269.... £ 18,459.75 .... £ 92.30 .... £ 552.00
270.... £ 17,907.75 .... £ 89.54 .... £ 554.76
271.... £ 17,352.99 .... £ 86.76 .... £ 557.54
272.... £ 16,795.45 .... £ 83.98 .... £ 560.32
273.... £ 16,235.12 .... £ 81.18 .... £ 563.13
274.... £ 15,672.00 .... £ 78.36 .... £ 565.94
275.... £ 15,106.06 .... £ 75.53 .... £ 568.77
276.... £ 14,537.29 .... £ 72.69 .... £ 571.61
277.... £ 13,965.67 .... £ 69.83 .... £ 574.47
278.... £ 13,391.20 .... £ 66.96 .... £ 577.35
279.... £ 12,813.85 .... £ 64.07 .... £ 580.23
280.... £ 12,233.62 .... £ 61.17 .... £ 583.13
281.... £ 11,650.49 .... £ 58.25 .... £ 586.05
282.... £ 11,064.44 .... £ 55.32 .... £ 588.98
283.... £ 10,475.46 .... £ 52.38 .... £ 591.92
284.... £ 9,883.54 .... £ 49.42 .... £ 594.88
285.... £ 9,288.65 .... £ 46.44 .... £ 597.86
286.... £ 8,690.79 .... £ 43.45 .... £ 600.85
287.... £ 8,089.95 .... £ 40.45 .... £ 603.85
288.... £ 7,486.09 .... £ 37.43 .... £ 606.87
289.... £ 6,879.22 .... £ 34.40 .... £ 609.91
290.... £ 6,269.32 .... £ 31.35 .... £ 612.95
291.... £ 5,656.36 .... £ 28.28 .... £ 616.02
292.... £ 5,040.34 .... £ 25.20 .... £ 619.10
293.... £ 4,421.24 .... £ 22.11 .... £ 622.20
294.... £ 3,799.05 .... £ 19.00 .... £ 625.31
295.... £ 3,173.74 .... £ 15.87 .... £ 628.43
296.... £ 2,545.31 .... £ 12.73 .... £ 631.57
297.... £ 1,913.74 .... £ 9.57 .... £ 634.73
298.... £ 1,279.00 .... £ 6.40 .... £ 637.91
299.... £ 641.10 .... £ 3.21 .... £ 641.10
300.... £ - .... £ - .... £ 644.30

I hope that helps.

GG

Dick_here

Brilliant thanks. Now where's that calculator to plug my figures into ?