How To Calculate Hire Purchase Interest

Calculate total balance payable to bank.

How to calculate hire purchase interest. If you do not know your interest rate enter your monthly payment and we can calculate your interest rate for you. Amount financed total interest on amount financed. Flat rate 3 multiplied by length of term 4 years 3 4 12. Get estimate from our hire purchase calculator to help you to calculate possible monthly repayments.

We will calculate your payments total costs total interest charged and provide a schedule of payments detailing each month of the contract to show you the remaining balance at each payment. 20 000 multiply that number by the flat rate you just calculated e g. 0 00 total payment rm. The monthly instalment is calculated as follows.

How do i work out my monthly hire purchase payments. Take the amount you want to borrow e g. 20 000 x 12 x 0 01 2 400. Hiring period in years calculate.

Monthly loan repayment 107 955 84 1 285 18. Interest rate p a. Calculated interest charges rm. Balance payable to bank 90 000 x 1 7 x 0 0285 107 955.

Where the rate of interest is not given and only the cash price and the total payments under hire purchase installments are given then the total interest paid is the difference between the cash price of the asset and the total amount paid as per the agreement. How bank calculate your car monthly instalment. Calculate monthly hire purchase repayment.