This calculator helps determine whether switching to a new loan is the right option for you and it analyses three scenarios (1) not switching and keep repaying the currently loan (2) switch to a new loan and make the minimum repayment or (3) switch to a new loan and keep current and higher repayment if possible.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, the interest compounding frequency may not be the same as the repayment frequency.
- It is assumed that a year consists of 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout the calculation, whereas repayments are rounded to at least the nearest cent in practice.
- This calculator does not take into account some loan features such as redraw facilities and offset accounts etc.