BYAJ GUIDE

Monthly rate or yearly rate: what should I enter?

Choose the matching rate period and understand how monthly and annual rates are applied.

Choose the rate period that matches the rate you were given. A rate of 2% per month is different from a rate of 2% per year: the first applies the percentage to monthly periods, while the second applies it to annual periods.

For this estimate, the monthly option treats each 30 days as one period. The annual option treats 365 days as one period. The selected option changes how the entered rate is applied; it does not convert one rate type into another.

Before comparing two offers, check whether their quoted rates use the same period and calculation method. Also check for compounding, repayment schedules, fees, and special day-count rules, because those can change the amount due.

This guide explains a general estimate. A lender’s contract and repayment schedule determine the actual amount due.