Calculators Interest FAQ Directory Excel templates

Effective rates:
Savings Plan
Credit

Loans:
Repayment Plan
Early repayment charge

Retirement provision:
Pension by lump sum payment
Withdrawal plan

Repayment plan, effective interest and early repayment charge

Online calculator for a repayment plan

You can build a repayment plan, also called amortization schedule, on the basis of the nominal interest. Here, the interest is variable and a change of interest rates is possible. Special repayments can be included into the repayment plan. The effective interest and an early repayment charge can be calculated.

Basic mortgage conditions:

Name of the creditor:	Nominal interest rate:	%
Credit sum:	Amount of monthly payments:	or
Disbursement date:	Initial repayment ratio(%):
	Duration(months/years):	other duration:

Repayment plan--> Result

Nr.	Date	Debt previous month	Interest rate	Payment	Special repayment	Interest	Repayment	New debt
1.	2009-04-01	100000.00				433.33	2676.67	97323.33
2.	2009-05-01	97323.33				421.73	2688.27	94635.07
3.	2009-06-01	94635.07				410.09	2699.91	91935.15
4.	2009-07-01	91935.15				398.39	2711.61	89223.54
5.	2009-08-01	89223.54				386.64	2723.36	86500.17
6.	2009-09-01	86500.17				374.83	2735.17	83765.01
7.	2009-10-01	83765.01				362.98	2747.02	81017.99
8.	2009-11-01	81017.99				351.08	2758.92	78259.07
9.	2009-12-01	78259.07				339.12	2770.88	75488.19
10.	2010-01-01	75488.19				327.12	2782.88	72705.31
11.	2010-02-01	72705.31				315.06	2794.94	69910.36
12.	2010-03-01	69910.36				302.94	2807.06	67103.31
13.	2010-04-01	67103.31				290.78	2819.22	64284.09
14.	2010-05-01	64284.09				278.56	2831.44	61452.65
15.	2010-06-01	61452.65				266.29	2843.71	58608.95
16.	2010-07-01	58608.95				253.97	2856.03	55752.92
17.	2010-08-01	55752.92				241.60	2868.40	52884.52
18.	2010-09-01	52884.52				229.17	2880.83	50003.68
19.	2010-10-01	50003.68				216.68	2893.32	47110.36
20.	2010-11-01	47110.36				204.14	2905.86	44204.51
21.	2010-12-01	44204.51				191.55	2918.45	41286.06
22.	2011-01-01	41286.06				178.91	2931.09	38354.97
23.	2011-02-01	38354.97				166.20	2943.80	35411.17
24.	2011-03-01	35411.17				153.45	2956.55	32454.62

		Sums:		74640.0	0.0	7094.6	67545.4

Any warranty for the correctness of the numbers is excluded.
Spreadsheet template for the computation of a amortization schedule -->

Spreadsheet template for the computation of the effective interest -->

Early Repayment--> Redemption penalty

After changing the repayment plan, you should always recalculate it to save the changes. The repayment plan should be calculated with all possible additional repayments, because they reduce the early repayment charge. The repayment plan should only cover the period in which the interest rate is fixed. Changes of interest rate are not possible with the computation of the redemption penalty because the redemption penalty arises from the fixation of the rate.

The early repayment charge
For most amortized loans, the interest rates are fixed. These loans are called fixed rate mortgages (FRM). The firm interest rate has the advantage for the borrower that they can plan their monthly payments in the future. If the interest rate in the capital markets rises they have an advantage since their payments remain constant. But in case the interest rates falls they will not take profit from that.
If a loan agreement is quit prematurely, compensation is necessary - the so-called "early repayment charge" or "redemption penalty". A currently lower interest rate leads to a payment by the borrower. If the interest rates have risen the creditor will gladly accept the early repayment or will even grant compensation.

Encyclopedia
Amortization schedule

Mortgage

Early repayment charge

Performance of the system about IRRQ Contact form Disclaimer