Bounce Back Loan Calculator: How to CalculateAccurately in 2023

A Bounce Back Loan (BBL) calculator can help you calculate the total amount you will need to pay back, including interest and fees, over the loan term Here's how you can calculate the repayment amount accurately:

Start with the loan amount: The first step is to determine the total amount of the loan that you are borrowing.The maximum amount that you can borrow under the Bounce Back Loan Scheme is £50,000

Calculate the interest rate: Bounce Back Loans have a fixed interest rate of 2.5%.You can calculate the interest amount by multiplying the loan amount by 2.5% (0.025).

Add upfront fee: The upfront fee is 1 25% of the loan amount, and this fee is deducted from the loan amount before it is paid to you.Therefore, the loan amount you receive will be 98 75% of the total loan amount

Determine the total repayment amount: To calculate the total repayment amount, you need to add the interest amount and the upfront fee to the loan amount. For example, if you borrow the maximum amount of £50,000, your calculation will be as follows:

Loan amount: £50,000

Interest amount: £1,250 (50,000 x 0 025)

Upfront fee: £625 (50,000 x 0.0125)

Total loan amount received: £49,375 (50,000 - 625)

Total repayment amount: £51,625 (50,000 + 1,250 + 625)

Determine the monthly repayment amount: The loan term for Bounce Back Loans is 6 years, and repayments are not required for the first 12 months To determine the monthly repayment amount, divide the total repayment amount by the remaining number of months after the first year

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