## 7.8. Loan Repayment Calculator

The **Loan Repayment Calculator** is used to calculate compound interest. It provides a way of entering four of
the five parameters of a compound interest calculation and then calculating the remaining figure.

The calculator is split into two panes. The left pane has five fields with a **Calculate**
button and a Clear button. The Calculate button is used to select
the figure to calculate. The Clear button is used to clear any amount in the field.

**Payment Periods:** This field is used to select the number of
payments you wish to use in the calculation.

**Interest Rate:** This field is used for the interest rate
percentage.

**Present Value:** This field usually contains the amount you
have borrowed. It is the base amount you wish to compound.

**Periodic Payment:** This field contains the amount that is the
payment for the period selected (IE monthly, weekly, etc). If it
is for repaying a loan it should be a negative number.

**Future Value:** This field contains the final value at the end
of the periods above. If we are repaying a loan in full it would be **0**.

The right pane contains buttons to select what sort of payments and compounding is used for the left
pane calculations.

Compounding: This button allows you to select the interval used if the
**Discrete Compounding** button is selected.

Payments: This button allows you to select the interval used for the Payment
Periods field.

End of Period Payments: Use this button if the payment is at the end of
the period.

Beginning of Period Payments: Use this button if the payment
is at the beginning of the period.

Discrete Compounding: This button is used where interest is
charged at a discrete interval defined by the Compounding button above.

Continuous Compounding: This button is used when the
interest is charged continuously.

Payment Total: This field shows the total amount paid.

Examples of using the **Loan Repayment Calculator** are given in the Tutorial and Concepts Guide.
`GnuCash`

Tutorial and Concepts Guide’s
Chapter on Loans