# Questions tagged [amortization]

any question related to the amortization of loan. Also refered to as EMI or repayment schedule

76 questions
Filter by
Sorted by
Tagged with
46 views

### Remaining Balance Formula for Actual/360 and Actual/Actual Accrual Methods

Is there a concise formula for calculating the remaining balance of a loan with actual/360 and actual/actual accruals? I know for 30/360 amortizations, the remaining balance is just the FV of the ...
54 views

### Formula for time taken to pay off loan with annual interest and monthly repayments

I am trying to find how to work out the period of time it will take to pay off a loan. There are plenty of online calculators out there but I cannot find the formula they use. I want to recreate the ...
132 views

### Mortgage: Floating rate loan tenure extension on rate increase

I am trying to figure out how my bank has implemented re-pricing on my floating rate home loan. The original home loan was for an amount of ₹ 48 lakhs (₹ 4.8 Mn) at an annual rate of interest (RoI) ...
160 views

### What is a fair way to split the profits for a co-owned property?

Seeking out some financial guidance... My partner and I recently purchased a home with my sister and brother-in-law. All spaces will be shared with the exception of bedrooms. We will be meeting with ...
99 views

### Loan Amortization with first payment period less than others

I'm trying to make loan amortization schedule where Interest rate is calculated on the exact period dates. (installment dates taking into account weekends and public holidays) and with the first ...
3k views

### 'principal balance' vs 'outstanding balance'

Is 'principal balance' same as 'Outstanding Balance'? My understanding is - In amortisation schedule, Outstanding balance gets reduced according to 'principal' portion of your monthly payment. After 6 ...
22 views

### How much to amortize if purchased sometime mid-year for the tax year an intangible asset?

If my SMLLC purchased an intangible asset (say a domain name for \$3000) in the middle of the year (say March X, 2021), assuming we use a 15-year straight-line depreciation, can I amortize the entire ...
5k views

### Treatment of web domain ownership & reselling for tax purposes: Capital asset, or not?

I run a web publishing business. I buy a large number of domains — and occasionally sell one, although not frequently. Some domains are developed into websites, which bring in advertising ...
439 views

### Mortgage change of terms (lower rate) increases payment amounts

My bank now offers lower interest rates than what I got when I first started my mortgage. I called to see about changing my terms (lower rate, same payoff date), and they said it would actually ...
26 views

### Interest and principal line-item amounts for seasonal mortgage

I'm working with this question: Seasonal Loan Amortization. I wondered if someone could elaborate how to calculate the principal and interest portions of the payments when they are paid. The article ...
70 views

### Is the principle payment in an amortization schedule the amount that goes towards how much of the house you own?

When I first learned of amortization schedules I was confused by the division of payments into "interest" and "principle". I think I get it now: isn't it that the principle payment ...
158 views

### How are fractional cents handled when bank create a loan payment schedule

I am working on developing my own loan payments schedule generator and I have a question regarding how fraction cents For example, this load: Principal: \$10,000 Interest: 5% per year Period: 48 ...
8k views

### How do I calculate interest on a personal loan with irregular withdrawals and payments?

Several years ago, I loaned money to a family member. They borrowed different amounts at irregular intervals. They are now beginning to repay, so I want to establish exactly how much they owe. I have ...
3k views

### What is the typical compounding/amortized period on US mortgage loans

In a different question it is stated that Mortgages are compounded .. 12 times a year in the USA Is this true or just applicable to that question? I am looking at a site where it explains how to ...
73 views

### How does depreciation deduction work in mortgages?

Home investors are said to be concerned that the depreciation deductions exceed mortgage amortization. This is because the depreciation remains flat but the amount of amortization rises, albeit slowly,...
147 views

### When I capitalize amortization table, the present value doesn't equal the sum of PV or the XNPV

How is it that when I capitalize an amortization table, the present value doesn't equal the sum of PV or the XNPV formula of all the future payments? If I capitalize the future payments with the same ...
244 views

### Paying USD 1000 towards the principal on my mortgage

I bought a home worth 200,000 paid 20% down, my interest rate is 4%, 30 yr fixed Remaining Loan 160,000. Initially, lets say I pay around 1000 USD (200 toward my principal and 800 towards my interest)....
174 views

### Refinance Cost is high

I got 30 years loan for 232K two years ago with interest rate of 4.25% and now I am planning to refinance again for 15 years. Financial company mentioned they can provide interest of 2.85% but the ...
2k views

### How does paying extra on my mortgage affect my amortization schedule?

I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
73 views

### “Negative Amortization” Terminology

I want to better understand the term "negative amortization". For example, in the Graduated Payment Mortgage (GPM), people often say it usually has negative amortization as the loan balance increases ...
334 views

### Do extra mortgage payments typically go directly towards principal?

I have a 30 year mortgage and I'd like to make extra payments each month to speed up the amortization schedule. I thought this would be better than taking out a 15 year mortgage as it gives me some ...
155 views

### Buy 1 bed flat via private sell (Edinburgh, UK) - opportunity?

I am renting a flat (1 bed + box room) with my partner in 'central' Edinburgh. We pay £675 pcm. Our landlady wants to sell it urgently and she asks for £160,000. She is keen to sell it to us. A ...
103 views

### Future balance of loan balance [duplicate]

I would like to know if there is a formula that could tell me the future balance of a loan. For example, if I have a loan of 10,000 at 6% for 5 years and I do the amortization it brings that the ...
91 views

### Does the amortizing payment on a loan depend on whether interest is calculated daily or monthly?

Assume two banks offer a \$100,000 mortgage at 6% annual interest for 30 years with payments due monthly. One bank assumes each month has 30 days. The other bank uses the actual number of days in ...
547 views

### How do I calculate APR from monthly instalments?

I have been given a quote for a car loan in Thailand. I want to calculate the APR but am not sure how. (All of the tools and explanations I’ve seen are going in the other direction, from a percentage ...
3k views

### How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
548 views

### Formula for previous months interest payment and balance - Reverse Amortization

I am trying to resolve an issue I am having where a system calculated incorrect additional payments on a loan for a couple of months, resulting in the new current balance being incorrect. I want to ...
2k views

### How to calculate EMI for Quarterly, Half yearly and Annual payments and generate amortization schedule?

I am a software engineer by profession. I am a newbie to finance. I am trying to create a loan amortization schedule. I have the formula for EMI= P*(r*(1+r)^n)/((1+r)^n)-1. How to apply it for ...
8k views

### How do I calculate the principal paid down on a mortgage?

I'm looking for an equation to find out the current principal on a mortgage. I have the following variables: n periods monthly payment amount interest rate of mortgage I'd like to know how much I'd ...
226 views

### how to find flat rate of interest per annum and month if we have given reducing rate of interest or loan amount and tenure?

For example: For loan amount 500000 for 5 years at the rate of 12% (reducing interest rate), EMI is 11,122.22 per month Here 12% reducing is equivalent to flat 6.69% per annum or flat 0.55% per month. ...
41 views

### Calculating Interest with Compute Method as Canadian - Semiannual

i'm trying to validate a software Interest Calculation. The defaults given are as followed. Interval: Monthly Nominal Annual Rate: 10% Disbursal Amount: \$500,000 Disbursal Date 01/01/2018 Payment ...
22k views

### Does CAPEX include intangible assets?

CAPEX is defined here as funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. The video states that "the value of the capital ...
303 views

### Mortgage principal reduction

For a 30-year mortgage that started less than a year ago, how much will the monthly payment be after making an additional \$100,000 payment towards the principal? The mortgage currently has a balance ...
136 views

### How to calculate payment and accrued interest on a mortgage when one payment missed (D30)?

How is the interest and principal payment calculated when mortgage has already missed one payment? Are the new payments calculated off the new balance (non-amortized balance) or the original scheduled ...
7k views

### Why are my auto loan payments calculated differently than my mortgage payments?

Last year I got a home loan that follows the standard Rule of 78s amortization schedule. I can easily predict how much of my mortgage payment will go to interest and how much to principal. A few ...
57 views

### How to calculate interest on Monthly Effective loans where duration greater than compounding

I have an amortization software and trying to manually calculate the interest accrued it calculated. The Key values are: Compounding: Monthly Nominal Annual Rate: 10% Day Count: 365 Principal: 500,...
401 views

### Partially vs. Fully Amortized Loan

Isn't the article beneath wrong to interpret a Fully Amortized Loan as a loan with 7 years maturity? Isn't the correct comparator a Fully Amortized Loan with 30 years maturity, and 30 years ...
68 views

### Disposing of hardware item from current assets, is the reduction in assets posted to equity or special loss account?

I'm disposing of an old laptop that is broken and completely unusable. Let's say it was purchased for \$1000 before taxes, already been accounted for in Current Assets since the date of purchase, and ...
151 views

### What is the formula for loan payoff with daily compounded interest and annual payment?

I am trying to get the loan repayment amount for below data : Loan Amount: \$20,412.65 Payments (#): 10 Annual Interest Rate: 2.5% Loan Date: 07/02/2018 First Payment Due: 09/02/2018 (next payment ...
81 views

### Calculating Amortization Payment Amount when first payment is early

How can I determine a fixed payment amount for a loan that has an early first payment? Example: Loan Amount: \$100 Interest: 10% Loan Date: January 1st, 2018 First Payment Date: January 15th, ...
154 views

### How can I amortize 4 rates over a 30 year term?

I've been offered a HELOC modification with the following terms: Beginning balance \$148,148.59, Initial rate and term is 1% for 60 months at a pmt of \$374.60, The 2nd term begins Jan of yr 6, at 2% ...
597 views

### What is the math used to calculate the impact that overpaying a mortgage has an an amortization table?

I'm in the classic 'pay extra on the house vs invest' argument with my partner (not the subject of this question) and I'm trying to understand what exactly happens when I pay extra on a mortgage. I ...
2k views

### Seasonal Loan Amortization

Hi I can compute a Basic Loan Amortization Schedule, But now I'm trying to Calculate a Seasonal Loan Amortization Schedule . So for example A loan starts at January And Will go on for 3 years, with ...
2k views

### Credit Card Amortization via Principal-Only Payments

On a home loan amortization schedule, I can make the monthly payment and add the principal-only owing for the "next" payment along with it, and avoid paying the interest for that next month, which ...
2k views

### Calculating amortisation payment amount, where first payment date differs from loan start date

I'm trying to reproduce the schedule, but I cant seem to get the same Payment and Interest for each month. The tricky part here is that the Loan start date is 9 Feb 2017 but the first payment is only ...
161 views

### How do equity, amortization, and market value factor into net profit on a sold house?

TL;DR: If I buy my first house at \$500k using an FHA loan, and I want to eventually buy a \$1MM home (with a conventional 20%-down loan), how do I calculate the time at which the sale of my first ...
573 views

### What's an easy way to create a floating amortization loan? [duplicate]

When dealing with a mortgage company, paying off a loan is quite simple. Now everything is online and most of the times you can pay more than the minimum payment each time. Each month the interest ...
278 views

### How to calculate the payments going into interest and principal on a reverse amortization loan?

I'm trying to figure out the relative amount of the payments that are going towards interest and principal each period with a loan in which you pay more towards principal in the beginning and have it ...