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Interest Calculation


The table here illustrates how the interest cost is calculated for the bank loan and, if applicable, the seller loan. In the sample project the beginning bank loan balance is $754,925, remaining the same during the three month construction and holding period. The interest rate trends downward starting at 8%, then 7%, and so on. The seller loan of $500,000 begins in month number 1 and ends in month number 36. The monthly interest costs for the bank loan and the seller loan are calculated in columns 4 and 8 respectively and the interest cost per phase is calculated in columns 9, 10 and 11. Finally, the total interest cost of $197,985 populates throughout all applicable output pages.


 

 
                 
                     

       Column 4        Column 8  Column 9  Column 10  Column 11
Period Bank Loan Balance Interest Rate Interest Phase Seller Loan Interest Rate   Interest Total Interest Phase 1   Total Interest Phase 2 Total Interest Phase 3
                     
1 $754,925 8.00% $4,964 1 $500,000 5.00% $2,083 $7,047 $0 $0
2 $754,925 8.00% $4,964 1 $500,000 5.00% $2,083 $7,047 $0 $0
3 $754,925 8.00% $4,964 1 $500,000 5.00% $2,083 $7,047 $0 $0
4 $1,786,675 8.00% $11,748 1 $500,000 5.00% $2,083 $13,831 $0 $0
5 $1,663,425 8.00% $10,938 1 $500,000 5.00% $2,083 $13,021 $0 $0
6 $1,540,175 8.00% $10,127 1 $500,000 5.00% $2,083 $12,211 $0 $0
7 $1,416,925 8.00% $9,317 1 $500,000 5.00% $2,083 $11,400 $0 $0
8 $1,293,675 8.00% $8,506 1 $500,000 5.00% $2,083 $10,590 $0 $0
9 $1,170,425 8.00% $7,696 1 $500,000 5.00% $2,083 $9,779 $0 $0
10 $1,047,175 8.00% $6,886 1 $500,000 5.00% $2,083 $8,969 $0 $0
11 $923,925 8.00% $6,075 1 $500,000 5.00% $2,083 $8,158 $0 $0
12 $800,675 8.00% $5,265 1 $500,000 5.00% $2,083 $7,348 $0 $0
13 $677,425 7.00% $3,898 1 $500,000 5.00% $2,083 $5,981 $0 $0
14 $554,175 7.00% $3,188 1 $500,000 5.00% $2,083 $5,272 $0 $0
15 $430,925 7.00% $2,479 1 $500,000 5.00% $2,083 $4,563 $0 $0
16 $307,675 7.00% $1,770 1 $500,000 5.00% $2,083 $3,854 $0 $0
17 $184,425 7.00% $1,061 1 $500,000 5.00% $2,083 $3,144 $0 $0
18 $61,175 7.00% $352 1 $500,000 5.00% $2,083 $2,435 $0 $0
19 ($62,075) 7.00% $0 1 $500,000 5.00% $2,083 $2,083 $0 $0
20 ($185,325) 7.00% $0 1 $500,000 5.00% $2,083 $2,083 $0 $0
21 ($308,575) 7.00% $0 1 $500,000 5.00% $2,083 $2,083 $0 $0
22 ($431,825) 7.00% $0 1 $500,000 5.00% $2,083 $2,083 $0 $0
23 $882,375 7.00% $5,077 2 $500,000 5.00% $2,083 $0 $7,160 $0
24 $756,575 7.00% $4,353 2 $500,000 5.00% $2,083 $0 $6,436 $0
25 $630,775 6.00% $3,111 2 $500,000 5.00% $2,083 $0 $5,194 $0
26 $504,975 6.00% $2,490 2 $500,000 5.00% $2,083 $0 $4,574 $0
27 $379,175 6.00% $1,870 2 $500,000 5.00% $2,083 $0 $3,953 $0
28 $253,375 6.00% $1,250 2 $500,000 5.00% $2,083 $0 $3,333 $0
29 $127,575 6.00% $629 2 $500,000 5.00% $2,083 $0 $2,712 $0
30 $1,775 6.00% $9 2 $500,000 5.00% $2,083 $0 $2,092 $0
31 ($124,025) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
32 ($249,825) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
33 ($375,625) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
34 ($501,425) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
35 ($627,225) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
36 ($253,025) 6.00% $0 2 $500,000 5.00% $2,083 $0 $2,083 $0
37 ($378,825) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
38 ($504,625) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
39 ($630,425) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
40 ($756,225) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
41 ($882,025) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
42 ($1,007,825) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
43 ($1,133,625) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
44 ($1,259,425) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
45 ($1,322,325) 5.00% $0 2 $0 5.00% $0 $0 $0 $0
46 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
47 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
48 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
49 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
50 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
51 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
52 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
53 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
54 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
Etc ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
Etc ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
Etc ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
118 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
119 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
120 ($1,322,325) 5.00% $0 3 $0 5.00% $0 $0 $0 $0
                $150,030 $47,955 $0
                     
                  Total Interest $197,985
                     
                     



As is the case with any of the model's output pages, the interest calculation page can be printed. Click on the links below to go to any of the model output pages.
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