{"id":13958,"date":"2021-04-30T12:46:21","date_gmt":"2021-04-30T12:46:21","guid":{"rendered":"https:\/\/margill.com\/?p=13958"},"modified":"2025-10-10T09:19:29","modified_gmt":"2025-10-10T13:19:29","slug":"is-margill-interest-calculator-or-margill-law-calculator-able-to-create-a-compound-interest-calculation-with-irregular-payments-and-interest-rates-that-change-over-time","status":"publish","type":"post","link":"https:\/\/margill.com\/en\/is-margill-interest-calculator-or-margill-law-calculator-able-to-create-a-compound-interest-calculation-with-irregular-payments-and-interest-rates-that-change-over-time\/","title":{"rendered":"Is Margill Interest calculator or Margill Law calculator able to create a compound interest calculation with irregular payments and interest rates that change over time?"},"content":{"rendered":"<p><strong>Q:\u00a0Is Margill Interest calculator or Margill Law calculator able to create a compound interest calculation with irregular payments and interest rates that change over time?<\/strong><\/p>\n<p>So is my understanding correct that your software will be able to work out the balance owing in terms of an overdue loan with compounded interest based on the following example:<\/p>\n<p>Initial amount o\/s\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 250 000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As at 1\/01\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Interest rate 7%<\/p>\n<p>Interest rate changes as follows:<\/p>\n<p><em>Format is DD\/MM\/YYYY<\/em><br \/>\n01\/07\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7.5%<br \/>\n01\/09\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8.25%<br \/>\n07\/11\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8.75%<br \/>\n05\/02\/2021\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9%<\/p>\n<p>Payments received <em>(R = Rands &#8211; South African currency)<\/em>:<\/p>\n<p>5\/02\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 2 000<br \/>\n7\/03\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 5 000<br \/>\n1\/04\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 1 000<br \/>\n30\/6\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 500<br \/>\n5\/08\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 500<br \/>\n3\/09\/2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 500<br \/>\n15\/01\/2021\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R 5 000<br \/>\n7\/02\/2021\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 2 000<\/p>\n<p>What is the amount o\/s as at today, with interest compounded monthly? Today we are April 30, 2021<\/p>\n<p><strong>A: Yes, very easily. Such calculations are the purpose of the software. Margill can do thus much more easily than with a spreadsheet and a lot let risk of error.<\/strong><\/p>\n<div class=\"moz-cite-prefix\">This was not really necessary but I first constructed an interest table (you could have changed the rates manually in the resulting payment schedule).<\/div>\n<div><\/div>\n<div>Go to Rate Tables and click on New Table. You must use this icon to add the dates and interest rates:\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13961 \" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf39fe3455.png\" alt=\"\" width=\"39\" height=\"34\" \/>.<\/div>\n<div class=\"moz-cite-prefix\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13959 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf2c5719f0.png\" alt=\"\" width=\"362\" height=\"330\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf2c5719f0.png 604w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf2c5719f0-300x273.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf2c5719f0-450x410.png 450w\" sizes=\"auto, (max-width: 362px) 100vw, 362px\" \/><\/div>\n<div><\/div>\n<div>Save the table. I saved it under the name &#8220;Tanya&#8221;&#8230;<\/div>\n<div><\/div>\n<div>Then go to the very powerfal calculation called &#8220;Recurring Payments&#8221;. Here is the information to first plug in (never mind my the $ currency &#8211;\u00a0 my Windows currency is the $ &#8211; yours would be R).<\/div>\n<div><\/div>\n<div>Notice my Payment frequency is Irregular.<\/div>\n<div><\/div>\n<div>Notice also that I used an Interest Table instead of a fixed interest rate &#8211; we see the Tanya table.<\/div>\n<div>\n<p id=\"vEfGors\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13969 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb.png\" alt=\"\" width=\"668\" height=\"384\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb.png 1212w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb-300x173.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb-1030x592.png 1030w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb-705x405.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7092fceb-450x259.png 450w\" sizes=\"auto, (max-width: 668px) 100vw, 668px\" \/><\/p>\n<p>Now to enter the irregular payments, click on\u00a0<img loading=\"lazy\" decoding=\"async\" width=\"161\" height=\"30\" class=\"alignnone size-full wp-image-13962 \" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf501d37b1.png\" alt=\"\" \/>. This window shows up.<\/p>\n<p>You can either entre the payments manually in here (even add negative amounts that are principal increases):<\/p>\n<p id=\"DNoOtBJ\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13970 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf72f76805.png\" alt=\"\" width=\"498\" height=\"388\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf72f76805.png 868w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf72f76805-300x233.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf72f76805-705x548.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf72f76805-450x350.png 450w\" sizes=\"auto, (max-width: 498px) 100vw, 498px\" \/><\/p>\n<p>Even if there weren&#8217;t many payments, I created a small Excel sheet for the import &#8211; very useful when there are dozens, hundreds or thousands of payments:<\/p>\n<\/div>\n<p id=\"zscxllJ\"><img loading=\"lazy\" decoding=\"async\" width=\"189\" height=\"198\" class=\"alignnone size-full wp-image-13967 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf67697f1b.png\" alt=\"\" \/><\/p>\n<p>Then press on the Excel icon and select the Excel file:<\/p>\n<p id=\"OFnMKvm\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13971 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf77cb21a6.png\" alt=\"\" width=\"458\" height=\"219\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf77cb21a6.png 859w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf77cb21a6-300x144.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf77cb21a6-705x337.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf77cb21a6-450x215.png 450w\" sizes=\"auto, (max-width: 458px) 100vw, 458px\" \/><\/p>\n<p id=\"rspsVZi\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13972 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7a571c16.png\" alt=\"\" width=\"410\" height=\"309\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7a571c16.png 654w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7a571c16-300x226.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf7a571c16-450x339.png 450w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/p>\n<p>Now Save and you get back to this window. Notice the check\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13974 \" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf82462183.png\" alt=\"\" width=\"21\" height=\"16\" \/>\u00a0that shows there&#8217;s data in the Irregular payments. We are now ready to Compute the Results table.<\/p>\n<p id=\"PTbgxsr\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13973 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf811205aa.png\" alt=\"\" width=\"453\" height=\"362\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf811205aa.png 926w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf811205aa-300x240.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf811205aa-705x564.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf811205aa-450x360.png 450w\" sizes=\"auto, (max-width: 453px) 100vw, 453px\" \/><\/p>\n<p>You will see this window appearing that asks until when do you wish to compute interest. I entered April 30. Interest will be computed until April 30 in the morning, not end of day.<\/p>\n<p id=\"DVFWWtY\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13976 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf8bfa3624.png\" alt=\"\" width=\"471\" height=\"201\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf8bfa3624.png 748w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf8bfa3624-300x128.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf8bfa3624-705x301.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf8bfa3624-450x192.png 450w\" sizes=\"auto, (max-width: 471px) 100vw, 471px\" \/><\/p>\n<p>Press on OK and we have the results.<\/p>\n<p>Notice I added a line at the end just in case I wanted the interest until April 30 <strong>end of day<\/strong> (midnight) &#8211; so added a line with May 1. Industry standard says first day included, last day excluded. Use the icons on the far right to add, insert and delete lines. There&#8217;s also an Undo button.<\/p>\n<p id=\"AJQAioF\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13977 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db.png\" alt=\"\" width=\"640\" height=\"500\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db.png 1494w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db-300x235.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db-1030x805.png 1030w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db-705x551.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf93e773db-450x352.png 450w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>You can save and update this table as required &#8211; you can add lines, change payments, insert payments if by error you had forgotten one, add or change interest rates, etc. You can do just about anything with this calculation.<\/p>\n<p>The right mouse click offers many options:<\/p>\n<p id=\"zqOCDst\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-13978 aligncenter\" src=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf990bd156.png\" alt=\"\" width=\"492\" height=\"234\" srcset=\"https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf990bd156.png 792w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf990bd156-300x143.png 300w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf990bd156-705x336.png 705w, https:\/\/margill.com\/wp-content\/uploads\/2021\/04\/img_608bf990bd156-450x214.png 450w\" sizes=\"auto, (max-width: 492px) 100vw, 492px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p id=\"OOLaQwK\">Hope this answers your questions&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q:\u00a0Is Margill Interest calculator or Margill Law calculator able to create a compound interest calculation with irregular payments and interest rates that change over time? So is my understanding correct that your software will be able to work out the balance owing in terms of an overdue loan with compounded interest based on the following [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","footnotes":""},"categories":[409,193,408],"tags":[291,293,292],"class_list":["post-13958","post","type-post","status-publish","format-standard","hentry","category-margill-law-and-standard-documentation","category-knowledge-base","category-margill-law-and-standard","tag-balance-owing","tag-compounded-interest","tag-overdue-loan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Is Margill Interest calculator or Margill Law calculator able to create a compound interest calculation with irregular payments and interest rates that change over time? 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