Interest calculation

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Our loan interest calculation method allows for up to ten decimal places in rounding the daily interest rate.

Example 1:

• $500,000 home loan with interest only repayments and an annual percentage rate of 3.99% p.a.
• Daily percentage rate rounded to 10 decimal places = ((3.99%/365)/100)
• Daily interest charge = $500,000 x 0.0001093151 = $54.66 per day
• Monthly interest charge = $500,000 x 0.0001093151 x 31 days = $1,694.38*

*Assuming the daily balance outstanding is $500,000 over a 31 day month

Example 2

• $500,000 home loan with interest only repayments and an annual percentage rate of 3.79% p.a.
• Daily percentage rate rounded to 10 decimal places = ((3.79%/365)/100)
• Daily interest charge = $500,000 x 0.0001038356 = $51.92 per day
• Monthly interest charge = $500,000 x 0.0001038356 x 31 days = $1,609.52*

*Assuming the daily balance outstanding is $500,000 over a 31 day month