User's Manual - Drake Software

Amortization
Drake Software User’s Manual
Amortization
The Amortization tool prepares loan repayment schedules for various loan scenarios.
To prepare a loan repayment schedule:
1. From the Home window, select Tools > Amortization.
2. Enter a Schedule Title to be displayed at the top of the amortization schedule.
3. Complete all other applicable fields. Fields are described in Table 11-4.
4. Click Calculate. The program creates the amortization schedule.
To print the schedule, click Print.
To save it for later viewing (using Reports > Report Viewer), click Save.
Table 11-4: Amortization Schedule Fields and Descriptions
Amortization
Schedule Field
Loan Amount
Amortization Periods
Payments Per Year
Annual Interest
Payment Amount
Payment Type
Date of First Payment
The original amount of the loan.
Description
The number of payments to be made over the life of the loan.
(Example: If the loan is for two years and monthly payments are
required, you would enter 24 (2 years = 24 months).
The number of payments to be made each calendar year.
The annual interest amount for the loan. This amount is calculated
automatically. If the interest is unknown but the payment amount is
known, leave this field blank.
The amount of the payment. In most cases, this amount is calculated
automatically based on the other information entered. If this
field is left blank and the interest amount is entered in the Annual
Interest field, the program displays the calculated payment here.
The payment type. Select one of two types of payments: Fixed
Payment or Fixed Principal. (The default is Fixed Payment.)
Due date of the first payment. This entry is used to determine the
dates for subsequent payments.
To show only the payments from certain dates, enter those dates in the Filter Schedule
Payments fields and click Apply.
To clear the screen, click Reset.
To get information on balloon payments, click the How do I make a balloon payment?
link.
To send the schedule to the printer, click Print. To save it for viewing through
Reports > Report Viewer, click Save, designate a file name, and click Save.
306 Tax Year 2012