One of the payment methods T-REX offers is Scheduled Pricipal.

 

With Scheduled Principal, the principal will be fixed for the entire term of the loan, as set in the Scheduled Principal column, it can also be set as a Vector. The interest is calculated regularly, and the final payment is the sum of both. 

Example:

Modeling one loan, with Scheduled Principal payment method. 

  • The loan’s balance is $100,000
  • The interest is 5%
  • Principal is set to 2500
  • Amortization term 100

The Report:

Calculation:

Start by setting the principal to 2,500.

 

Then calculate the interest based on the previous period’s ending balance.

 

Sum the interest and the principal for the final PMT per period. 

 

Deduct the Principal from the collateral balance.

 

Apply the calculations for the entire loan’s term, on the last period, the principal will pay out the remaining collateral balance.