Rate of interest as decimal (not per cent) per period
Interest paid against the loan changes during the life or the loan. The per is the payment period to calculate the interest amount
Number of compounding periods
Present value
Future value
When payments are due
Interest portion of payment
v0.0.12
What is the amortization schedule for a 1 year loan of $2500 at 8.24% interest per year compounded monthly?
const principal = 2500
const periods = [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12]
const ipmts = periods.map((per) => f.ipmt(0.0824 / 12, per, 1 * 12, principal))
expect(ipmts).toEqual([
-17.166666666666668,
-15.789337457350777,
-14.402550587464257,
-13.006241114404524,
-11.600343649629737,
-10.18479235559687,
-8.759520942678298,
-7.324462666057678,
-5.879550322604295,
-4.424716247725826,
-2.9598923121998877,
-1.4850099189833388
])
const interestpd = ipmts.reduce((a, b) => a + b, 0)
expect(interestpd).toBeCloseTo(-112.98308424136215, 6)
The periods variable represents the periods of the loan. Remember that financial equations start the period count at 1!
The total payment is made up of payment against principal plus interest.
pmt = ppmt + ipmt
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Compute the interest portion of a payment.