Will Quicken adjust the principal and interest amount on monthly loan payments?

nelocke

I have made a loan to another person and will be receiving equal monthly payments. When I receive the payment, will Quicken adjust the amount of each payment that goes to principal and the amount that goes toward interest?

Jim_Harman

If you have set up the lending loan correctly, you should have a Reminder for the monthly payment. It will create a split transaction, with part as interest income to you and part as a transfer to reduce the principal in the loan account. The amounts will be adjusted as the loan is paid off.

Jim_Harman

Quicken's ability to automatically compute and apply the interest to each payment depends on the details of the loan.

Apparently it can't handle loans where the interest due depends on the date the payment was received, but loans with a pre-defined payment schedule are OK.

Jim_Harman

If you have set up the lending loan correctly, you should have a Reminder for the monthly payment. It will create a split transaction, with part as interest income to you and part as a transfer to reduce the principal in the loan account. The amounts will be adjusted as the loan is paid off.

nelocke

Great! I had seen some other comments that Quicken didn't have that ability, so good to know.

Jim_Harman

Quicken's ability to automatically compute and apply the interest to each payment depends on the details of the loan.

Apparently it can't handle loans where the interest due depends on the date the payment was received, but loans with a pre-defined payment schedule are OK.

NotACPA

Monthly Interest loans, such as traditional mortgages and others like that, can be calculated by Q.

Others, such as most auto loans where the method is "daily interest, can't be calculated by Q and the split needs to be done manually.