This article provides a basic explanation of how amortization works. The formula for calculating the periodic payment of a loan is given, along with a web-based calculator. The article also explains how to create an amortization table.

1 comment:

Anonymous
said...

I am trying to create a spreadsheet that calculates overdraft loan interest the way the bank does. The loan advances as needed and is usually paid off multiple times per month, but the rate is set. The rounding is the problem. I am often off a cent or two to what the bank calculates. It's because of the way the interest accrues on a daily basis. Is there anyway to emulate how the bank calculates?

## 1 comment:

I am trying to create a spreadsheet that calculates overdraft loan interest the way the bank does. The loan advances as needed and is usually paid off multiple times per month, but the rate is set. The rounding is the problem. I am often off a cent or two to what the bank calculates. It's because of the way the interest accrues on a daily basis. Is there anyway to emulate how the bank calculates?

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