This rule of 78 calculator can be used to provide the rule of 78 formula interest expense for any period in the term of a loan, up to a maximum of 600 periods.
Additionally the calculator will produce a loan amortization schedule setting out for each period, the beginning loan balance, the interest expense and repayment for the period, and the ending loan balance.
Calculator Instructions
The Excel rule of 78 calculator, available for download below, produces an loan amortization schedule by entering details relating to the loan principal, the periodic repayment, and the number of periods in the loan term.
The steps to use the rule of 78 calculator are as follows:
Step 1
Firstly enter the principal loan amount.
Step 2
Enter the loan repayment. This is the constant loan repayment at the end of each period throughout the term of the loan. It is important to realize that a period can be any term (month, year etc).
Step 3
Enter the loan term. This is the number of periods in the term of the loan. The calculator calculates the interest expense for this period. A period must be the same as that defined in Step 2.
To illustrate suppose a loan has a 36 month term and repayments in Step 2 are each month. If you enter the term as 36, the expense will be for each month. In contrast if the loan is for say 3 years and the repayments in Step 2 are annual, you enter the term as 3 and the interest expense will be for each year.
Step 4
Enter the period for which the rule of 78 interest expense is required. For example, if you need the interest expense for period 3, then enter 3.
Step 5
Finally the rule of 78 calculator works out the interest expense for the period entered in step 4.
In addition, the calculator provides a rule of 78 loan amortization schedule setting out for each period, the beginning loan balance, the rule of 78 period interest, the period repayment, and the ending loan balance.
Rule of 78 Calculator Excel Download
The Excel rule of 78 calculator is available for download below. The calculator will calculate the interest expense for any loan with a maximum term of up to 600 periods. To use the calculator simply enter the loan principal, periodic repayment, and loan term.
Users use this loan calculator template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a calculator with loan amortization schedule that you might use. It is a purely illustrative rule of 78 template. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the rule of 78 worksheet excel, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.