Choose the right structure
Amortized loans repay principal over time. Deferred-payment loans accumulate to one maturity amount, while discounted structures work backward from a promised future payment.
Flexible loan analysis
Model the structure, cash received, repayment, and full borrowing cost
Choose a conventional amortized loan, a lump sum due at maturity, or the present value of a predetermined future payment. Then account for compounding, payment frequency, lender fees, and extra principal.
Plan with context
The payment is not the same thing as the price of borrowing.
Loan structure determines when interest accrues and when cash changes hands. This worksheet connects the quoted rate with cash received, fees, repayment timing, and the changing balance.
Rate and compounding interact
The nominal rate is converted through the chosen compounding and payment frequencies. More frequent compounding can increase the effective cost when the quoted rate stays fixed.
Fees reduce usable proceeds
An origination fee may be withheld from the principal even though repayment is based on the full loan amount. Compare cash received with the total contractual outlay.
Term trades payment for interest
A longer repayment term usually lowers each scheduled payment but keeps principal outstanding longer, which can substantially raise total interest.
Extra principal changes the path
Additional principal reduces later interest and may shorten the term. Confirm that the lender applies extra money to principal without a prepayment charge.
APR comes from the disclosure
The calculation shows the economics of entered fees and timing, but a lender’s legal APR may follow jurisdiction-specific disclosure rules and include different charges.
Included
Three loan structures, years and months, five compounding frequencies, three payment frequencies, fees, upfront costs, extra principal, payoff comparison, charts, and schedules.
Not included
Variable rates, late charges, payment holidays, irregular drawdowns, taxes, collateral changes, lender-specific day counts, or a legally disclosed APR calculation.
Use it well
Enter figures from the lender’s formal offer, compare cash proceeds rather than principal alone, and evaluate total outlay across multiple quotes with the same term.