wwp8

is there a such way(formula) to calculate repayments on a basic calculator
if someone gave you info like this

9%apr
over 36 months
and borrow for example £30k

cos i can do + and - VAT using a normal calc without the % sign

but wondering is there a formula for that as it could be handy.

NotoriousREV

APR is tricky as it must take into account any fees you pay as well as interest, it's easier using flat rate to work it out.

Alternatively, use a site like www.moneysupermarket.com to compare loans

MattN

By paying off the loan in installments, the amount you have borrowed is reducing each month. The interest you are paying is in fact more than xx% of the money owed throughout the year. The APR will take this into account, and it will be a figure higher than xx% when worked out.

So no you can't.

DPat

30*1.09*1.09*1.09/36

Reffro

The formula to work out the repayments based on a flat rate is as follows:-

(Loan Amount * ((Flat rate expressed as a decimal of one*no.of years)+1))/ No.of months = Monthly repayment.

Flat rate is usually about half the APR. To work out the repayments for your example you should do the following:-

(30000*((0.045*3)+1))/36 If the APR is 9, half that to get 4.5 and divide that 4.5 by 100 to get 0.045.
=>
(30000*(0.135+1))/36 Multiply the flat rate by the no.of years of the loan 0.045 * 3 = 0.135
=>
(30000*1.135)/36 Add one to 0.135 to get 1.135 and multiply this 1.135 by the amount borrowed which gives you the total amount to be repaid.
=>
34050/36 = £945.83 pm Divide the total amount to be repaid by the number of months the loan is to be paid over, to get you approx monthly repayment.

Follow that and the answer will be correct to about £2-3 pounds per month.

For £20000 over 4 years at 11%APR you get the following:-

(20000*((0.055*4)+1))/48 = £508.33pm