Hello

I am looking into buying a loan calculator for a company I am making a website for. I am no maths expert but I can plug figures into a formula :)

I have looked at this calculator as it was recommended to me.

http://www.financecalcs.co.uk/smartcalcs/LoanCalculatorquote.php
However it doesnt give the same answers as other calculators i have checked it against such as this one

http://www.efunda.com/formulae/finance/loan_calculator.cfm
If i add a loan of 10,000 with 6% interest over 12 months (and everything else set to 0) on the first calculator i get a monthly repayment of $883.33

However if i add the same figures to the second calculator I get a repayment of 860.66. I can see the formula used by the second one and I have plugged the figures in and get the same amount myself so I am happy with that one. However I can't check the first calculator as there is no formula shown

So this raises the question that the first calculator must use a different formula. Do you know what formula the first calculator might be using? Is it better or more sophisticated? I am thinking perhaps that is why it was recommended to me.

Thanks a lot

Put in 0% interest and see how it goes. Notice how it doesn't handle rounding very well (off by .04 pounds).

That made me notice what it was doing.

10,000*.06 = 600

10,000+600 = 10600

10600/12 = 833.33333

truncate to get 833.33

They are not compounding at all.

They are just charging you the full interest up front and then having you pay a flat percentage of that every month.