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yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 18 June 2021

Hi,

I was calculating the annuity factor from interest rate. I have amortised the loan and did the same using online loan amortisation calculator. There is a small difference in Principle, interest, total interest and total principle.

I tried several calculators and the difference exists. Why is the online calculators total interest lower than Annuity factor calculations?

Formula= Loan amount/Last year annuity factor.

Replies (2)

Quick Summary

This discussion explores discrepancies between annuity factor calculations and online loan amortisation calculators. The user notes that online calculators consistently show a lower total interest amount compared to calculations using the annuity factor formula (Loan amount / Last year annuity factor). They suspect that online calculators might use different, proprietary formulas or include interest subsidies, making it difficult to replicate their exact results.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 18 June 2021

The calculation for online calculator is different for every calculator available in online

yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 18 June 2021

I also have made calculations from scratch and I was worried as their rate is different and I think they have some interest subsidy or something included on personal loan calculator. I guess no one can know about their asymmetric formulas.