Loan Schedule

Description
This template will help you calculate loan and interest balances, accrued interest at any point in time on loans granted or issued.

I have tried to make this tool as flexible as possible. As such, it allows you to:

– Choose the calculation period (1, 3 etc. month). This is the period for which the calculations are performed and accrued interest amounts and loan and interest balances are provided.
– Set the interest period (1 month, 3 months etc.). This is the period at the end of which accrued interest is treated in some way (see below)
– Specify interest treatment at the end of each interest period (repay, capitalize or include into accumulated interest balance)
– Select the daycount method (30/360, actual/actual, actual/365 etc.)
– Set varying interest rates for different periods
– Include several loan drawdowns at different dates
– Implement various repayment schedules (regular repayments for the same amount or a customized schedule with different amounts and dates)
– Include accrued interest into the repayment amount or make interest repayments on top of it
– Provide an interest-free period, skip principal and interest repayments for a certain period in the beginning

The template includes a summary grouping the amounts by larger intervals (annual, quarterly) and indicating:

– Opening and closing principal and interest balances
– Accrued and capitalized/repaid interest during the period
– Principal drawn and repaid during the period

The template can be used on a stand-alone basis (to perform just loan calculations) or as part of a larger budgeting package. It can also be incorporated into investment analysis models. Finally, you can use it as a learning tool to understand the real-life loan calculations.

The publication includes an Excel file and a text guide with explanations.