# PPI Calculator

If you want to get an estimate of your possible PPI refund amount you can use an online PPI calculator. There are a number of websites that offer quick and simple online results, but it is worth knowing that there are doubts about their accuracy. There are a number of factors that may influence the outcome, and the following two can affect the results a quite considerably:

a)     You may have either a single premium or a monthly premium policy

b)     Your policy may be for a loan, a mortgage or a credit card.

The best way to start your investigations is to have a look at the original credit agreement that applies to your loan. You will find a clear notification of the value of the payment protection insurance (PPI) policy that you agreed to, as well as the amount borrowed. If you do not have this information available simply call us on 0800 840 7292 and have a chat with one of our friendly claims advisers. We will get in touch with your lender and ask for the necessary information by way of a Subject Access Request (SAR) for you.

## Calculating the Value of A PPI Claim for a Single Premium Policy

If you do not have your original credit agreement to hand do not worry – you can still calculate the likely amount of PPI refund you are entitled to. You will need the following information:

1: The value or amount of the loan

2: The specific terms of the loan

3: The APR applicable to your loan.

The following calculations look a little more complex than they are; follow them carefully and you will arrive at the right answer. For this example we are assuming a loan of £10000 over a period of five years at 7.9%APR. Statistics show that the standard addition that PI brings to the loan is around 25%, but there are some cases in which it can be more. Assuming 25%, your total loan amount is now £12,500. We can break it down as follows:

Loan Amount = £10,000

Term of Loan = 60 months

Interest Rate = 7.9%

Interest on Loan = £3,950

Interest on PPI Policy = £987.50

Total Repayable = £17,437.50

Our example begins with a PPI cost of £2500, and as we can see above the interest on that over 5 years amounts to £987.50. Your basic reclaim amount is £3,487.50. We also need to add compensation, which the banks have been asked to pay, at 8% per year. So we need to add an extra £79 to the total, bringing it to £3,566.50.

This is a very simple example and ignores some other factors that may influence the outcome: You may have paid off your loan earlier than agreed, with the PPI payment reduced, or your loan may be partly outstanding. If so you may be awarded the payments so far, with the remainder taken account of in the rest of the loan.

## Calculating A PPI Refund on a Monthly Premium Policy

You can find out how much you have been paying on a monthly policy by looking at your statements. This will also show you for how long you have been paying into your PPI policy.

The payments for such policies can vary greatly – we have seen some as low as £9 per month and others as much as £150 – which makes it very difficult to assess an accurate PPI repayment figure. However if you multiply the monthly payment by the number of months you have paid and add an annual rate of 8% you should arrive at your repayment amount.

## Calculating A PPI Reclaim for a Credit Card

Credit cards are difficult to assess a value for PPI refunds because your balance will have fluctuated from month to month. Typically, the charge would be around 1% of the outstanding balance. If your balance was £5000 at month end then your charge would be £50. Also, with a credit card PPI you accrue interest at 20% per annum, and this can amount to considerably more. For instance, we had a customer who was awarded £32,799.63 for a solo PPI credit card claim!

## Let Us Calculate Your PPI Claims

The above calculations show that you do not need a PPI calculator to find out how much you may be awarded. If calculating percentages and figures is not your forte, or if you want more help and advice on your claim, you can fill in our simple online contact form and we will call you back at your convenience. If you prefer you can give us a call on 0800 840 7292 and one of our friendly and knowledgeable team will be more than happy to help.