ClearPolicy utilizes standard amortisation formulas to accurately calculate your client's monthly repayments. This ensures clarity and precision in financial planning.
To calculate the monthly payment for a fully amortizing loan, use the following formula:
PMT = NAF × [r(1+r)^n] / [(1+r)^n - 1]
Where:
If a balloon (residual) payment applies at the end of the loan term, the formula adjusts accordingly:
PMT = [NAF - (Balloon ÷ (1+r)^n)] × [r(1+r)^n] / [(1+r)^n - 1]
For your convenience, here's an example to illustrate the calculation process:
Loan Details:
Calculation Steps:
Estimated Monthly Payment: ~$892
> Tip: Always double-check the input values for accuracy to ensure precise loan calculations.
When considering your client's loan options, be mindful of the following factors:
For a detailed breakdown of the loan repayment structure, expand any product result to view:
> Note: Understanding each component of the repayment can aid in better financial planning for your client.
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