Interest Calculating Incorrectly

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  • Updated 4 months ago
  • (Edited)
I set up separate debt accounts to track my two student loans over a month ago.  It seems to be calculating the interest amount of my payments much higher than my lending institution.  I made a payment of $51.95 for one account.  When entering the transaction into good budget, they auto populate the interest as $24.70, but the lender says $5.09.  Any idea what's going on here?
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featherstories

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Posted 4 months ago

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Wayne Woodbury

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On the accounts tab, select the Add/Edit button, and click the Edit button next to the debt account.  The interest rate, remaining balance and other information is displayed.

I'm not sure exactly how the interest is calculated, but It may not match the financial institution perfectly.  I know I typically need to edit in interest payment on every loan payment even though I have an automatic transaction set up with my bank and one to match in Goodbudget.  The interest is close, but never right on.
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Alex Park, Official Rep

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Hi there,

Sorry for the late reply and for the interest calculation confusion. It's possible that there will be slight differences between how Goodbudget calculates Interest on Debt Accounts and how real-life lenders and institutions calculate interest, due to rounding or other differences in calculation. However a discrepancy that large seems to indicate something else might be off -- if you haven't yet figured out the discrepancy, would you send us an email at support@goodbudget.com with your household email address so we can take a look and see what might be causing that gap?