Calculator Specifications

The Equipment Finance Calculator determines the type of repayment required in relation to the loan parameters entered, namely amount, term, and interest rate. The default interest rate for personal loans is determined by the product selected. Based on an additional input from the customer, the Equipment Finance Calculator calculates the time saved to pay off the loan and the amount of interest saved. This is assuming that repayments are increased by the amount of extra contribution entered per repayment period. This feature is only available for products that support an additional repayment. The calculations are performed in relation to the original loan parameters, namely the amount, annual interest rate, and term in years, at the repayment frequency entered.

Calculator Assumptions

Length of Month

All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month.

Number of Weeks or Fortnights in a Year

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

Rounding of Amount of Each Repayment

In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount.

Rounding of Time Saved

The time saved is presented as a number of years and months, fortnights or weeks, based on the repayment frequency selected. It assumes the potential partial last repayment when calculating the savings.

Amount of Interest Saved

This amount can only be approximated from the amount of time saved and based on the original loan details.

Calculator Disclaimer

The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.