This calculator is designed to help you estimate your monthly repayment amount for a loan obtained through SNAP Finance, a popular provider of flexible finance options. Understanding the potential cost of borrowing is crucial for making informed financial decisions.
How it Works: The Math Behind the Calculation
The calculation uses a standard amortization formula to determine the fixed monthly payment for an instalment loan. The formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly instalment payment.
P = The principal loan amount (the total amount you borrow).
i = Your monthly interest rate. This is calculated by dividing the Annual Interest Rate by 12 (i.e., Annual Interest Rate / 100 / 12).
n = The total number of payments over the loan's lifetime (the loan term in months).
Example Breakdown:
Let's say you borrow £1000 (P) over 12 months (n) at an Annual Interest Rate of 29.9%.
Therefore, your estimated monthly payment would be approximately £96.66.
Why Use This Calculator?
SNAP Finance offers loans for various purposes, often for essential purchases or managing cash flow. This calculator helps you:
Estimate Affordability: See how much each monthly payment might be based on different loan amounts, interest rates, and terms.
Compare Options: If you're considering financing a purchase, you can use this calculator to compare the potential monthly costs with other payment methods.
Budget Effectively: Plan your finances by knowing the approximate outgoing cost each month.
Disclaimer: This calculator provides an estimation only. Actual loan terms, rates, and final payment amounts may vary based on SNAP Finance's specific lending criteria, your credit assessment, and any associated fees. Always refer to your official loan agreement for precise details.
function calculateSNAPPayment() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var loanTermMonths = parseInt(document.getElementById("loanTermMonths").value);
if (isNaN(loanAmount) || isNaN(annualInterestRate) || isNaN(loanTermMonths) || loanAmount <= 0 || annualInterestRate < 0 || loanTermMonths 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// Handle 0% interest rate case
monthlyPayment = loanAmount / numberOfPayments;
}
// Format the output to two decimal places with a currency symbol
var formattedMonthlyPayment = monthlyPayment.toFixed(2);
document.getElementById("result").innerHTML = 'Your estimated monthly payment will be: £' + formattedMonthlyPayment + '';
}