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Mortgage Calculation/Formula

  • 26-03-2012 11:18am
    #1
    Speculator
    Registered Users, Registered Users 2 Posts: 300 ✭✭


    Hello,

    Does anybody know how to calculate mortgage repayments for capital & interest and interest only?

    I know that there are 100's of calulators on the net but I would like to know the formula for these calculations. i.e. a term, b capital, c rate etc..


Comments

  • #2
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Speculator wrote: »
    Hello,

    Does anybody know how to calculate mortgage repayments for capital & interest and interest only?

    I know that there are 100's of calulators on the net but I would like to know the formula for these calculations. i.e. a term, b capital, c rate etc..

    Interest only calculations are very simple.... amount multiplied by rate divided by 12....gives you monthly repayment

    C&I is more complicated as it would need to take into account term & a reducing capital balance basis as Interest is calculated daily but generally applied monthly... I'd use a calc from the net for these ones!


  • #3
    Speculator
    Registered Users, Registered Users 2 Posts: 300 ✭✭Speculator


    killers1 wrote: »
    Interest only calculations are very simple.... amount multiplied by rate divided by 12....gives you monthly repayment

    C&I is more complicated as it would need to take into account term & a reducing capital balance basis as Interest is calculated daily but generally applied monthly... I'd use a calc from the net for these ones!

    Hi Killers1,

    Thanks for your reply, do you know the formula for the capital and interest calculation?


  • #4
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    Here's one for daily interest

    (1000*A/12)/(1-(1/(1+A/12)^(B*12)))*(C/1000)

    where A is the nominal interest rate, B is the term in years and C is the original principal.


  • #5
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Liam D Ferguson wrote: »
    Here's one for daily interest

    (1000*A/12)/(1-(1/(1+A/12)^(B*12)))*(C/1000)

    where A is the nominal interest rate, B is the term in years and C is the original principal.

    Think I'll stick to the online ones....


  • #6
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    killers1 wrote: »
    Think I'll stick to the online ones....

    Oh you're only being modest. I know you can work out monthly repayments using this formula in your head...after five pints. ;)


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  • #7
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Liam D Ferguson wrote: »
    killers1 wrote: »
    Think I'll stick to the online ones....

    Oh you're only being modest. I know you can work out monthly repayments using this formula in your head...after five pints. ;)

    Liam, I need at least 5 pints to be able to work out the interest only ones in my head!


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