CALC 1 Amortization Examples

Key	Description
	Calculates the amortization for periods PER1 to PER2, interest in x, principal in y and balance in z.
	Calculates and stores the next values for PER1 and PER2 based on the current values of PER2, P/YR and N.
	Calculates the interest paid from period 1 to period 2.
	Calculates the principal paid from period 1 to period 2.
	Calculates the balance after period 2 payments.
	Multiplies x times the number of payments per year and stores the result as the number of periods, N.
	Sets the initial values of PER1 = 1 and PER2 = P/YR.
	Stores or recalls the number of periods.
	Stores or recalls the interest rate per year.
	Stores or recalls the present value.
	Stores or recalls the payment.
	Stores or recalls the number of payment per year.
	Stores or recalls period 1.
	Stores or recalls period 2.

Amortization example:

What are the monthly payments for a 120,000 loan for 30 years at 6.125% per year with 12 payments per year of $-729.13?

If you have just used the TVM I/YR calculator to calculate the payment amount for the loan, the N, I/YR, PV, PMT and P/YR values have been retained and do not need to be entered.

To set the payment mode to END.

to clear the financial variables,

Stores the payments per year to 12 and the compounding periods per year to equal payments per year.

Stores the number of payments to 30*12=360,

6.125

Stores the annual interest rate,

120000

Stores the present value

-729.13

Stores the payment

Stores the beginning period to 1.

Stores the ending period to 9.

Calculates the following results:

example results

Interest of -5,490.80

Principal of -1,071.37

Balance of 118,928.63

Tapping , or will calculate the individual results.

Now calculate the values for periods 10 to 21.

Calculates the next set of periods and displays them. 10 to 21.

Calculates the following results:

Interest of -7,242.53

Principal of -1,507.03

Balance of 117,421.60

Now calculate the values for periods 22 to 33.

Calculates the next set of periods and displays them.

Calculates the following results:

Interest of -7,147.58

Principal of -1,601.98

Balance of 115,819.52

Note that the when summing the results that the values are rounded to the number of decimal places set. This is a common practice with calculators, but not spreadsheets.

Repeat the last calculations rounding to 4 decimal places.

sets the number of decimal places to 4.

repeats the amortization calculations with the following results:

Interest of -7,147.5987

Principal of -1,601.9613

Balance of 115,819.6603

Note that unlike the amortization calculation using the AMRT key on the TVM calculator, you can change PER1 and PER2 in any sequence. Also you never need to set PV or N, just PER1 and PER2.