Question

How to calculate a loan value after some time in compound interest monthly?

Answer 1

There are two parts to a mortgage repayment: paying back the money you borrow (the principal) and the interest charged by the lender. This interest adds up to a huge chunk of money on top of your loan.

From the Reserve Bank’s cash rate to the amount you borrow, there are several factors that affect the amount of your interest repayments. Let’s take a closer look at how home loan interest is calculated.