Home Loan Calculator Information
The Home Loan Repayments Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate.
Home Loan Calculator Assumptions
All months are assumed to be of equal length. In reality, many home loans accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
In practice, repayments are rounded to at least the nearer cent. However the home loan calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the home loan. This assumption allows for a smooth graph and equal repayment amounts.