This free rule of 78 calculator with amortization schedule can be used for any loan with a maximum term of 600 periods. The calculator will work out the interest expense for any period, and produce a loan amortization schedule over the term of the loan.
The rule of 78 method is used to split loan repayments between interest and principal for each period of the loan term. The method results in a higher interest expense and lower principal repayments in the earlier periods.
Interest earned is usually reported in the financial statements of a business in the accounting period in which it is earned under the accounting categories of interest income, interest revenue, or investment revenue.