Has anyone created an amortization schedule for a loan with a variable interest rate that also compounds 2x per year?

The loan has a set payment amount (15k monthly), but because the interest is variable the repayment term for the loan fluctuates, though it's usually between 60 and 66 months. The loan start date was 6 months ago and the rate has changed 3 times since then. Normally the lender would be providing this but they have left it up to the borrower (my sibling) who is not financially literate so it's fallen to me. Amortization is not something I am very good at calculating, and trying to come up with a schedule that accounts for the compounding has me stumped. Does anyone know what the formula I should be using is?

Thanks in advance for any advice!

  • You should be able to search and find a financial calculator from any number of banks or loan companies that you can plug in and get the answer. I am sure you can also Google the formula should you want to create your own Excel sheet for it. May 27, 2023 at 0:02
  • What does it mean to compound 2x? They double your debt every year? That seems a bit harsh. May 28, 2023 at 22:17

1 Answer 1


Simplest answer I know: When they change the rate, take that as a new loan for the remaining principal, paying off the previous loan.

Using that principal, the new interest rate, and the same (I presume) monthly payments, and any balloon payment due at the end, there are many online calculators that will give you the date on which this will be paid off. Or, if date is known but one of the other numbers isn't, the same approach can calculate in the other direction.

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