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Calculate how much interest I owe on 15k loan I wish to repay?

  • 02-08-2014 10:11pm
    #1
    kala85
    Registered Users Posts: 1,879 ✭✭✭


    I got a loan on the 4th of April 2014 for 15k. I was paying off 130e per fortnight on the loan. I intended to repay back the loan over 5 years.

    Now I have decided to pay off the loan early and I will be paying off 15k on the loan on this Friday 8th August 2014. The interest rate is 5%

    I want to work out how much interest I owe on the loan, but I want to see if the fortnightly repayments I have made up to this are having any effect on the interest.

    I have worked out on Excel that I have had the loan for 126 days and using simple interest would owe 258.90. Would this be correct or would it be lower because of the fortnightly repayments.


Comments

  • #2
    coylemj
    Registered Users Posts: 25,317 ✭✭✭✭coylemj


    The rate you've quoted is the true APR, if you paid €130 every 14 days, the balance after 5 years would be zero.

    Every 14 days the interest applied to the outstanding balance will be 0.1873%. That rate is calculated based on 1.05 to the power of 14/365.

    On August 8th the balance will be 14,076. If it's a fixed rate there may be penalties involved in an early termination of the loan.


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