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Help needed on working out loan repayments

  • 23-09-2018 10:29am
    #1
    Masala
    Registered Users, Registered Users 2 Posts: 3,527 ✭✭✭


    Just wondering if anyone could point me to an online calculator to help me work out the repayments on the below scenario

    Amount if loan: €45,000
    Term ;2 years
    Rate : 6%

    Am expecting that it will be a monthly Standing Order..

    Am doing a projected CashFlow for the lending institution and want to see what the monthly loan repayments would be.

    Note: loan not yet approved. Just getting my ducks in a row!

    Many thanks


Comments

  • #2
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭3DataModem


    Masala wrote: »
    Just wondering if anyone could point me to an online calculator to help me work out the repayments on the below scenario

    Amount if loan: €45,000
    Term ;2 years
    Rate : 6%

    Am expecting that it will be a monthly Standing Order..

    Am doing a projected CashFlow for the lending institution and want to see what the monthly loan repayments would be.

    Note: loan not yet approved. Just getting my ducks in a row!

    Many thanks

    1995.00 per month is pretty close.


  • #3
    Masala
    Registered Users, Registered Users 2 Posts: 3,527 ✭✭✭Masala


    3DataModem wrote: »
    1995.00 per month is pretty close.

    Many thanks..... would it not start with high repayments but as you pay off the amount outstanding will fall anf therefore the repayments would be lower ?


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,861 Mod ✭✭✭✭Henry Ford III


    Masala wrote: »
    Many thanks..... would it not start with high repayments but as you pay off the amount outstanding will fall anf therefore the repayments would be lower ?

    €2000 per month would be €48000 total. Level payments.


  • #5
    coylemj
    Registered Users, Registered Users 2 Posts: 25,624 ✭✭✭✭coylemj


    Masala wrote: »
    Many thanks..... would it not start with high repayments but as you pay off the amount outstanding will fall anf therefore the repayments would be lower ?

    No, term loans are usually structured as fixed monthly payments so what happens is that in the early days, more of your monthly payment goes on interest but as the capital reduces, so does the monthly interest meaning that more of the payment goes against the capital.

    In month 1 of your hypothetical loan, the interest would be €219 but after one year, the interest in month 13 would be €112.


  • #6
    CeilingFly
    Closed Accounts Posts: 3,378 ✭✭✭CeilingFly


    here's a calculator showing how loans are paid
    https://www.amortization-calc.com/

    In your case repayment is 1994 / month

    A bank may prefer you to show repayments for a 48 month loan instead of trying to force payment into the 1st 2 years. You can usually pay off early without penalty

    Over 4 years repayments would be 1057/month


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