Very few (if any?) online calculators can correctly handle this detail. The first period will typically be either longer or short than a month.Ī longer or shorter first period impacts the interest calculation.
That is, if a loan's payment schedule is monthly, the time from when the loan originates (when the borrower receives the money) until the day the first payment is due will likely not equal one month. Important - The first loan payment period is seldom equal to the frequency of other schedule payments. The payment amount is correct as long as both the lender and debtor agree to it! (If the calculator always recalculated the last unknown, then this feature would not be possible.) About the loan origination date (start date) and first payment date. This behavior is a feature! After all, there is no such thing as a 'correct' loan payment.
Why not design the calculator to recalculate the last unknown?īecause we want the calculator to be able to create a payment schedule using the loan terms you need. Note - You must enter a zero if you want a value calculated.
Always enter (and reenter) a 0 for the unknown value.
