Can anyone explain to me why Quicken's calculation of how each loan payment
should be allocated to principal and interest doesn't match what the Bank
does when I set the loan up in Quicken? Each month has been off by a
generally less than a dollar, but not in a consistent direction. Sometimes
the amount to principal is too high, sometimes too small. This is a simple
car loan, with a fixed interest rate, calculated daily, and I pay once per
month, with the effective date of the payment the 26th of each month,
because its electronically debited from the bank. Does it match for anyone?
Or does each payment need to be adjusted? If the latter, what's the point
of setting it up in Quicken? Just to give you a rough idea of what's going
on? Why can't Quicken use the same calculation the banks do? If it does
match for you, what could I be doing wrong? I've checked the data I'm
entering to set up the loan multiple times.
- posted 14 years ago