Glossary
The terms used across our calculators, defined in a sentence or two, each linked to the calculator that uses it.
- Annual equivalent rate (AER)
- What a deposit earns in a year once compounding is counted. Term Deposit Calculator
- Annual percentage rate (APR)
- The yearly cost of a loan including most fees, used to compare offers. Personal Loan Calculator
- CAGR
- Compound annual growth rate: the steady yearly rate that turns a starting value into an ending value. CAGR Calculator
- Compound interest
- Interest earned on interest already added; the more often it is added, the faster savings grow. Compound Interest Calculator
- Emergency fund
- Savings set aside to cover essential spending if income stops — typically three to six months’ worth. Emergency Fund Calculator
- FIRE
- Financial independence, retire early: investing enough that withdrawals cover spending for life. FIRE Calculator
- Instalment
- The fixed amount repaid each month on a loan, covering interest and part of the capital. Loan Calculator
- Loan-to-value (LTV)
- The loan as a share of the property’s value. A lower LTV usually means a better rate. Home Affordability Calculator
- Overpayment
- Paying more than the required instalment, which reduces the interest and the term. Loan Overpayment Calculator
- Real return
- Return after inflation — the gain in what your money can buy. Inflation Calculator
- Remortgage
- Moving your mortgage to a new deal or lender, usually for a lower rate. Remortgage Calculator
- Withdrawal rate
- The share of a portfolio taken out in the first year of retirement. Withdrawal Calculator
- XIRR
- An annualised return for money invested at different times. XIRR Calculator