How is interest expense added to my forecast?

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:
finance add loan detail amount and terms.png

 

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:
interest expenses highlighted profit and loss

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. 

  1. In the Forecast section, click Financing:
    Forecast section financing highlighted.png
  2. In the Financing table, click the title of the original Loan entry:

    financing table with delivery van asset highlighted.png

  3. In the overlay that appears, change the interest percentage. Click Save & Exit:
    delivery van loan details terms and save exit highlighted.png

How do I enter an interest-only or deferred-interest loan?

Loans with custom terms, such as deferred interest loans, interest-only payments, or deferred payment loans, can all be represented in LivePlan. Entering loans with custom terms covers the methods for entering these types of loans. 

For more info:

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