# Loan Calculator (Australian)

This calculator can help you in creating a proper amortization plan for your loan. You will easily be able to view your repayment options and the amount of interest that will be generated in the process. You can even view the effect of extra repayments on your loan. If you view the detailed report, you will be able to see your plan on both a yearly and repayment basis.

## Loan Amount

This is the total amount which you have borrowed.

## Interest Rate

This is the rate at which interest is incurred on the loan on a yearly basis.

## Term

This is the total time period in years in which you have to pay off the loan.

## Repayments for Loan

This is the sum of the principal amount and the interest amount which you have to pay in every period.

## Weekly and Bi – Weekly Payments

The amounts for weekly and bi-weekly payments are calculated by dividing your monthly payments with two. For the bi-weekly, this equals to 26 payments in a year so when it ends, you have actually paid an extra monthly payment. This accelerates your payoff rate and you are able to pay back the loan in a lesser amount of time. Consequently, you make significant savings in terms of interest and your term decreases.

The weekly option is pretty much the same as the biweekly one, except that you will be paying 52 payments in a year. The payment that you have to make in each period is 25% of your monthly payment.

The amount for accelerated weekly payment can be estimated if you divide the monthly payment by four. The total payments in a year are then 52 with you paying an extra monthly payment every year.

## Total Payments

This is the total payments that you will have to make over the entire loan term. The calculator does not include any extra principal payments in this.

## Total Interest

This is the total interest amount that is generated over the entire loan term. The calculator does not consider the effect of any extra principal payments in this.

## Extra Payment Frequency Type

This is the regularity with which you will be making extra payments. You can do this once a week, once a fortnight, once a month, once a year, or choose the lump sum option.

## Extra Payment Amount

This is the total amount that you will prepay to decrease your principal balance.

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Blog May 21, 2013 admin No Comment(s)