# Difference between revisions of "Monthly Instalment Calculations"

It is possible to set up monthly instalment payments both by card and by direct debit. The way these instalments are calculated are set out below:

## Monthly Instalments when NO DEPOSIT is paid

When no deposit is being paid on the account the monthly installments are calculated as follows:

Monthly Amount = Premium DIVIDED BY (Policy Term Length in Months MINUS 1)

For example; if the Premium is £1,100 and the policy runs for 1 year. Then the monthly amount is calculated as follows:

£1,100/(12 – 1) = £100 Monthly

## Monthly Instalments when a Deposit is paid

In this instance where a deposit has been paid the instalments are calculated differently the formula used is below:

Monthly Amount = (Premium MINUS Deposit) DIVIDED BY (Policy Term Length in Months MINUS 1)

For example; if the premium is £2,400 and the policy runs for 1 year with a deposit required of £200. The monthly amount is calculated as follows:

(£2400 - £200)/(12-1) = £200 Monthly