Calculator Information

The Equipment Finance Calculator calculates the required repayment type, at the requested frequency, based on the entered loan parameters, namely the amount, term and interest rate. The selected product determines the default interest rate for the personal loan product. The Equipment Finance Calculator also calculates the time saved to repay the loan and the amount of interest saved based on additional customer input. This occurs if repayments are increased by the entered additional contribution amount per repayment period. This feature is only enabled for products that support additional repayment. Calculations are performed at the entered repayment frequency, based on the initial entered loan parameters, namely the amount, annual interest rate and term in years.

Calculator Assumptions

Month Length

All months are assumed to have the same length. In reality, many loans accrue daily, resulting in a variable number of days of interest depending on the number of days in the month concerned.

Number of weeks or fortnights in a year

A year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than 365 or 366.

Rounding of each repayment amount

In practice, repayments are rounded to the nearest hundredth. However, the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the entire term of the loan. This assumption results in a smooth graph and equal repayment amounts. Note that the final repayment after the repayment amount increases.

Rounding of time saved

Time saved is presented as a number of years and months, fortnights or weeks, depending on the selected repayment frequency. It assumes the last potential partial repayment when calculating savings.

Interest amount saved

This amount can only be estimated from the time saved and the original loan details.

Calculator disclaimer

The results of this calculator are to be used as a guide only. The results do not represent quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates shown and default figures used in assumptions are subject to change.