Financial Toolbox

amortize

Amortization schedule

Syntax

• [Principal, Interest, Balance, Payment] = amortize(Rate, 
  NumPeriods, PresentValue, FutureValue, Due)
  

Arguments

Rate	Interest rate per period, as a decimal fraction.
NumPeriods	Number of payment periods.
PresentValue	Present value of the loan.
FutureValue	(Optional) Future value of the loan. Default = 0.
Due	(Optional) When payments are due: 0 = end of period (default), or 1 = beginning of period.

Description

[Principal, Interest, Balance, Payment] = amortize(Rate, NumPeriods, PresentValue, FutureValue, Due) returns the principal and interest payments of a loan, the remaining balance of the original loan amount, and the periodic payment.

Principal	Principal paid in each period. A 1-by-NumPeriods vector.
Interest	Interest paid in each period. A 1-by-NumPeriods vector.
Balance	Remaining balance of the loan in each payment period. A 1-by-NumPeriods vector.
Payment	Payment per period. A scalar.

Examples

A $500 loan paid in six installments at an annual interest rate of 9%

• [Principal, Interest, Balance, Payment] = amortize(0.09/6, 6,... 
  500)
  
  Principal =
     80.26   81.47   82.69   83.93   85.19   86.47
  
  Interest =
      7.50    6.3    5.07    3.83    2.57    1.30
  
  Balance =
    419.74  338.27  255.58  171.65   86.47   0.00
  Payment =
     87.76
  

See Also

annurate, annuterm, payadv, payodd, payper

acrudisc

annurate