Amortization and Annuity Payments
The pro version of the plugin offers the option to calculate repayments using the standard annuity formula:
P = rC / (1 – (1 +r)-n)
P = repayment amount
r = interest rate per period (as a decimal, eg: 2% = 0.02)
C = Current loan amount
n = number or repayments
However, there are two methods of calculating the interest rate per period. The simple method is to divide the APR by the number of periods per year. This is the system used in the USA. The method used in Europe is to convert the APR to get the rate per period. The plugin offers options for both methods.
The example below uses the US method of calculating amortization repayments:
Change the settings and compare with the results on this page: amortization-calc.com or bankrate.com
This example uses European method of calculating amortization repayments:
Test the calculations in Europe using this: moneysupermarket.com. or mortgagecalculator.net
For more information on the annuity formula take a look at the Wikipedia page.
May i know why I can’t select the Amortisation option in settings?
You need to upgrade to use that option
I am afraid I must be doing something wrong here… I just payed for the “pro” version in order to gain the Annuity Payments feature. However I try the plugin seems to calculate some scary math! Please tell what I am doing wrong!
When I am at it, this is what I really want. I have read and tried for a few hours but I am stuck… maybe it’s my language limitations:
Ideally I would like to have a form with three customer fields: a) full price b) – trade in c) -cash payment and the automated sum below = loan.
There should be a loan period of 1-6 years (displayed in months), and the monthly cost + total displayed, (for both annuity loan and linear amortization).
I would be very grateful for your help!
Try setting the repayment divider to 12.
Could we email you an example of the mortgage calculator which we’d like to replicate so that you could tell if you could do and how much you’d charge for it?
I can take a look for you. I might even have one I made previously you can use. I’ve sent you an email so you have mine (if that makes sense).