This article addresses some frequently asked questions about interest expense handling in LivePlan forecasts.
- How do I enter an interest-only or other custom loan term?
- Do I need to enter the interest expense in my forecast?
- How do I edit the interest expense?
How do I enter an interest-only or other custom loan terms?
You can represent loans with custom terms, such as interest-only payments or deferred payment loans, in LivePlan. Entering loans with custom terms covers the methods for entering these types of loans.
Do I need to enter the interest expense in my forecast?
When you enter a loan into the LivePlan forecast, the interest (and payments) are entered into your forecast automatically. These calculations come from the terms you enter for your loan, including the interest percentage and length of the loan:
You can see the calculated interest amounts in the Profit and Loss statement, in the Operating Income section on the Interest Expense line, as shown below:
How do I edit the interest expense?
To edit the interest expense, navigate to the Financing page of your forecast. The terms of the loan (or loans) in your forecast determine the interest expense. Therefore, to edit your interest expense, you will need to adjust the term of the loan or loans in your forecast.
- In the Forecast section, click Financing:
- In the Financing table, click the title of the original Loan entry:
- In the overlay that appears, change the interest percentage. Click Save & Exit: