Description
Allocate waiver to interest or principal first, cap each at its balance, and return excess beyond total debt.
Financial accounting arithmetic tracks amounts, balances, fees and allocations on a declared currency and sign basis. An algebraically consistent result does not authorize a transaction or establish an amount legally due.
Allocate waiver to interest or principal first, cap each at its balance, and return excess beyond total debt.
When to use this tool
Use Debt Waiver Principal Interest Allocation when you need a specified monetary balance or allocation calculation.
How to use the tool and how it works
- Enter principal, interest, waiver, interestFirst. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read principalWaived, interestWaived, excess. Use the output convention below.
Require nonnegative principal, interest and waiver. Allocate waiver to interest or principal first, cap each at its balance, and return excess beyond total debt.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| principal | Principal | Required. Finite number; minimum 0. |
| interest | Interest | Required. Finite number; minimum 0. |
| waiver | Waiver | Required. Finite number; minimum 0. |
| interestFirst | Interest First | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| principalWaived | Principal Waived | Required. Finite number. |
| interestWaived | Interest Waived | Required. Finite number. |
| excess | Excess | Required. Finite number. |
{
"input": {
"principal": 100,
"interest": 20,
"waiver": 30,
"interestFirst": true
},
"output": {
"principalWaived": 10,
"interestWaived": 20,
"excess": 0
}
}Limitations and assumptions
- The allocation order is supplied and does not establish legal discharge, tax consequences, lender consent or changes to an actual loan.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile source ledgers and governing agreements using the intended currency precision and accounting policy. Include omitted fees, tax, timing and legal requirements before acting on a result.
References
Similar or alternative tools
- Installment Rounded Principal Residual
Return payment-minus-interest as implied principal and recordedPrincipal minus that value as residual.
- Installment Overpayment Next Balance Term
Split opening+interest-payment into nonnegative balance and overpayment.