Entering a pre-existing loan with customized payments

In some cases, you may have a loan that exists before the start date of your forecast, and you need to represent a specific payment schedule for that loan, such as interest-only payments or a balloon payment.

For this scenario, you'll need two separate loan entries in your forecast:

  • One entry to represent the pre-existing balance
  • One entry to represent the payment schedule

In the example below, we're representing a pre-existing loan with a balance of $50,000, which has 10% interest. As of the start date of the forecast, we'll make interest-only payments on this loan for 12 months and then begin making payments against the principal.

Note: Your loan details will differ from the following example.


Entry #1: pre-existing loan balance

    1. In the Forecast tab, click Financing:
    2. On the Financing page, click the Add Loan button:
    3. Give the loan a name in the top field, then choose Before the plan start date from the pull-down menu:
    4. Enter the amount you owe. Then under How many payments remain as of your start date, enter 1. Enter a 0% interest rate. Then click Save & Close:
Note: we will represent the 10% interest on our loan in the next entry. The purpose of this entry is just to show the loan as pre-existing the plan's start date.
  1. As you can see in the table below, the pre-existing balance is now represented, and in the following month there's a payment of the loan in full. We'll represent the rest of this scenario in the second loan entry.

Entry #2: payment schedule

To enter this payment schedule into the forecast, we'll need to know two things ahead of time:

  • The amount of the interest-only payments
  • The amount of the interest-plus-principal payments

If you aren't sure of these amounts, you may want to consult your lender or do an online search for a loan payment calculator.

  1. In the Forecast tab, click Financing:
  2. On the Financing page, click the Add Other button:
  3. Give this segment of the loan a name and enter the annual interest rate:

  4. Under Do you expect to pay this money back within 12 months of receiving it? select No, or I'm not sure:

  5. In the next overlay, enter the full amount of the loan balance (from Step 1) in the first month. Click Next:
  6. In the last entry, enter your payment schedule. In the example below, we've entered interest-only payment amounts in the first year. Starting in Year 2, enter payment amounts for your interest-plus-principal payments. Then click Create & Exit.
  7. Click Create & Exit.

In the table below, you can now see the interest-only payments, followed by the interest-plus-principal payments:


Note: LivePlan rounds all amounts to the nearest dollar, so you may need to slightly adjust the amount of some interest-only payments to keep the full loan balance intact. 


More on customized loans:

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