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Showing posts from November, 2009

Calculating total interest accrued while paying down the simple interest loan periodically.

I was unable to find a web service or calculator on any websites that had a simple interest calculator in which the total of the loan was being payed down regularly. I was forced to make one in Excel. There are plenty of amortization calculators out there that generate the schedule for a loan with compound interest, like a mortgage, but none that show the schedule for a simple interest loan, like some HELOCs (in Canada). My Excel spreadsheet allows one to compare an amortization schedule on a compound interest loan to a schedule for a simple interest loan. This is useful if you want to see the affect of making payments on a simple interest loan, equal to the same amount at the same time of the month on the same frequency as you would on a mortgage. The spreadsheet assumes interest for the simple interest loan is calculated daily and that payments against the loan are applied to the interest accrued first, and then toward the principal. It can be tweaked if you wanted to calculate i