Interest uses the original principal
The calculator’s flat-interest method uses the original principal throughout the indicative term. It does not recalculate interest on a reducing outstanding balance each week. A flat rate and a reducing-balance rate describe different calculations.
How weeks are used
The calculator divides its monthly flat rate by four to obtain a weekly rate. It multiplies that weekly rate by the number of weeks and the principal. Four weeks is a modelling convention here; it is not the same as every calendar month.
From interest to a weekly amount
Calculated interest is added to the principal to produce the indicative total repayable. That total is divided by the term in weeks to give the weekly repayment. Display rounding may affect the final instalment; an issued schedule would need to specify exact amounts and dates.
Read the whole result
Check the amount used, term, weekly payment and total together. The calculator can adjust an indicative amount or term based on the information entered, so the requested amount and the amount used in the result may differ. Displaying a result does not approve that amount.
Check the final terms separately
Final documents need to identify any fees, security, guarantees, payment dates, early-repayment treatment and default provisions. This calculator does not quote every lender LendFI may arrange finance through. Live application collection remains paused.