amortize (Financial Toolbox)

Amortization.

Syntax

[prinp, intp, bal, pmt] = amortize(rate, nper, pv, fv, due)
[prinp, intp, bal, pmt] = amortize(rate, nper, pv, fv)
[prinp, intp, bal, pmt] = amortize(rate, nper, pv)

Arguments

rate: Interest rate per period, as a decimal fraction.

nper: Number of payment periods.

pv: Present value of the loan.

fv: Future value of the loan. Default = 0.

due: When payments are due: 0 = end of period (default), or 1 = beginning of period.

Description

[prinp, intp, bal, pmt] = amortize(rate, nper, pv, fv, due)

returns the principal and interest payments of a loan, the remaining balance of the original loan amount, and the periodic payment.

prinp: Principal paid in each period. A 1-by-nper vector.

intp: Interest paid in each period. A 1-by-nper vector.

bal: Remaining balance of the loan in each payment period. A 1-by-nper vector.

pmt: Payment per period. A scalar.

Example

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

[prinp, intp, bal, pmt] = amortize(0.09/6, 6, 500)
prinp =
   81.47   82.69   83.93   85.19   86.47   87.76
intp =
    6.30    5.07    3.83    2.57    1.30    0.00
bal =
  419.74  338.27  255.58  171.65   86.47    0.00
p =
   87.76