Calculator Assumptions Length of Month
All months are assumed to be equal. In reality, many loans accrue on a daily basis this can lead to varying interest in different months.
Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus the assumption is for a 364 day year.
Rounding of Repayment Amounts
The calculator uses the unrounded repayment to derive the amount of interest payable over the full term of the loan, however, institutions round repayments to the nearest cent. Unrounded payments provide for constant line within the graph. Note that the final repayment after the increase in repayment amount will be a partial repayment as required to reduce the loan balance to zero.
Amounts of Totals Payable under each Loan
The calculator quotes the total payable under each scenario in dollars and cents.
Amount of Saving under Lower Cost Loan
The calculation of the amount of repayments saved under the lower cost loan is based on unrounded payment amounts. The amount saved is quoted in dollars and cents, not rounded to the nearest dollar. Interest Rate
The interest rate input in the loan section of the calculator is a nominal interest rate per annum. The interest applied over each repayment period has been calculated as the nominal interest rate divided by the number of deposit periods. Timing of Interest Conversion
The calculator assumes that interest is charged to the loan account at the same frequency as the repayments are made. In practice, there may be differences between the timing of the loan repayments and the timing of the interest charges being added to the loan balance.
Current Interest Rate
SMSF loan Rate
Home loan Rate
Fixed 2 year orange advantage
Investment loan Rate
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