`"result" = Payment_ 1 [ 50000 , 6 , 30 , "Interest"]`

250.00

This equation calculates the individual cells of an Amortization payment schedule.  This equation calculates the interest and principal due for each month of a loan period.  You have a choice of several data items to report at your chosen payment month (see inputs for "choice" below)

INPUTS

This equation will take as an input:

• Original Loan Amount (P) - the initial principal of the loan; i.e., the amount financed
• Loan term (n) - input as years
• Interest Rate (i)
• extra payment - an extra amount applied at each monthly payment
• payment num - a payment number in the sequence of payments
• choice - a choice of output value reporting one of the following:
  • Interest - interest paid in the current month's payment
  • Principle - Principal paid in the current month's payment
  • Combined - Total interest and principal paid in the current month's payment
  • Balance - Principal remaining on the loan
  • Total Interest-to-Date - Total interest paid up to and including the chosen month's payment
  • Total Principal-to-Date - Total principal paid up to and including the chosen month's payment

The equation will output one of the choices for the amortization payment period specified.

Notes

An Amortization table Shows, for each payment period of a loan, the payment amount that is applied to the principal and the amount paid as interest.

For a standard fixed rate mortgage, this amortization schedule will show that more money is applied as interest to the earlier payments.  As the loan matures, the portion of the payment each month applied to the principal increases, and the amount paid as interest decreases.

This equation will generate an Amortization table, if you execute it for each month of the term, and it will return as a result the requested values for interest or principal for each requested payment period.

The equation will allow you to choose the Interest paid for that payment period,  the payment amount applied as Principal,  the Combined (total) payment for that period,  the Loan Balance after the specified payment, the total interest or total principal paid, which includes the current payment.

You can also enter an additional monthly payment into the calculation.  The additional monthly payment amount will be applied each payment period to the Principal payment.  The extra amount can be left blank to see results for a Standard Fixed Rate Amortization.