In this example:

100 000 $ loan taken out on 01/03/1999 whose first payment is due one month later (beginning of the month).

The interests are compounded twice per year (we could have chosen to compound once a month, daily (or other) or not to compound at all (simple interest).

The payments are made once a month.

The interest rates are variable (in this case, the target rate of the Bank of Canada). We could have added to this variable rate, 1%, 2%, 3%, etc. We could also have taken a single fixed rate or have created a custom variable interest rate table (including a couple of rates - example 5.25% for 24 months, then 5.75% for the duration).

We chose 50 payments of x$. Margill will calculate the amount of each payment. We could have chosen to pay 1500$ per month and consequently, the number of payments would have been calculated automatically. The capital can also be calculated automatically by entering an amount for each payment and the number of payments.

In this case, we want a balance of 0,00$.

By pressing on "Compute" the payment table is produced. We save the table in order to edit it later on since our debtor may have a few surprises to us...

June 1, 2002 our debtor borrows 5000$ of more. Thus we insert -5000 in the table. Always save the table...

August 1, the debtor refunds only 1000$.

The October 1st payment is late and paid on October 15 but for only 2000$ (and not the required 2200,17$). We could have added fees for not respecting the payment schedule or for NSF checks simply by inserting a negative amount (addition of capital).

April 1 2003, fortunately, the debtor compensates and refunds 3000$. Finally since we checked the box Balance = 0, at the theoretical full refund date, the balance is 0,00$ but with a 10 210.53$ payment. By unchecking the box, the true balance would be calculated. Other lines can be added to continue the payments.