One of the payment methods T-REX offers is Level Pay.
With Level Pay, the payment will be fixed for the entire term of the loan, it is calculated using the PMT function, and the interest and principal will be derived from it on a monthly basis (unless otherwise specified).
Example:
Modeling one loan, using Level Pay payment method.
- Balance: $1,000,000
- Rate: 5%
- Amortization Term: 100
Report:
Calculation:
Calculate the total payment based on the loan attributes. Set the same PMT for all periods of the loan amortization.
Then, calculate the interest based on the previous period’s ending balance.
Then set the principal to be the difference between the payment and the interest per period.
Deduct the principal amount from the balance each period.
Apply calculations for the entire loan’s amortization term.