Loans with interest

Money you lent or borrowed can earn simple yearly interest on the unpaid amount. This is optional and only applies to entries where you turn it on.

Add interest to an entry

1. Create or edit an I gave or I got entry.
2. Choose Add interest and enter the Yearly interest (%), for example 12.
3. Save. The entry shows the interest accrued so far and the total due today.

How interest is calculated

• Simple interest on the unpaid principal only. Interest never earns interest; there is no compounding.
• Days are counted on the calendar in the time zone saved with the loan, divided by 365.
• Amounts are exact to the smallest unit of your currency.

Recording payments

Payments cover unpaid interest first, then the loan. When you record a payment you can also:

• choose Record interest payment to pay interest only, or
• choose Change payment split to decide how much goes to interest and how much to the loan.

Each payment remembers its split, so later changes to the rate recalculate the balance without changing cash you already recorded.