Rate Checker Repayment Calculations
The potential annual savings amount shown in results are calculated using the below formula and assumes 12 monthly repayments using the lowest Canstar 5-Star Rated home loan rate based on the information you have provided. The calculation formulae for home loan repayments are as follows:
Principal & interest:
where:
P = the repayment amount;
PV = the original/initial loan amount;
r = the advertised interest rate (p.a.), divided by the number of repayments per year (repayment frequency); and
n = the total loan term in years, multiplied by the frequency of repayments per year.
Interest-only:
where:
P = the repayment amount;
PV = the original/initial loan amount; and
r = the advertised interest rate (p.a.), divided by the number of repayments per year (repayment frequency).