How does the calculator work out annual repayments on new borrowings?
The annual repayment is determined by calculating a monthly payment based on the amount, term and rate inputted (a monthly compounding interest formula is used to do this). The monthly repayment is then converted to an annual payment by multiplying it by twelve. Please note that this is an estimate only and the actual repayments on a new facility may vary due to the type of product and other factors. The budget planners are designed to cover a period of a year. Using the estimate for other periods of time will be invalid.
