Policy Loan Interest Unpaid Accrual Calculator

Route actual loan interest-only payments against caller period rates with unpaid interest capitalized each period, exact rounding; no inferred APR/day-count, principal repayment or tax rules.

Description

Unpaid policy-loan interest can capitalize into the next period’s principal.

Unpaid policy-loan interest can capitalize into the next period’s principal. Explicit period rates avoid inferring an APR or day-count convention.^[1]

The returned values include Rounded period interest accrual minor, Closing capitalized loan minor. The How section below explains the calculation, input rules and interpretation.

When to use Policy Loan Interest Unpaid Accrual Calculator

Use Policy Loan Interest Unpaid Accrual Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No principal repayment, inferred annual rate or tax rule is supplied.

Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.

How to use Policy Loan Interest Unpaid Accrual Calculator and understand its results

Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
Enter observedOpeningLoanPrincipalMinor, callerPeriodInterestBasisPoints, observedEndPeriodInterestPaymentsMinor using the field table and calculation rules, then run the tool.
Read roundedPeriodInterestAccrualMinor, closingCapitalizedLoanMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
observedOpeningLoanPrincipalMinor	Observed opening loan principal minor	number	Required
callerPeriodInterestBasisPoints	Caller period interest basis points	list of number	Required
observedEndPeriodInterestPaymentsMinor	Observed end period interest payments minor	list of number	Required

Enter integer opening money 0–10¹², aligned nonempty integer period basis points 0–10000 and integer interest-only payments 0–10¹². Reject a payment exceeding that period’s rounded interest. Capitalize the remainder in order with safe-integer checks; return period accruals and closing loan.

interest_i=roundMinor(balance_i×periodBps_i/10000); nextBalance=balance+interest−payment

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
roundedPeriodInterestAccrualMinor	Rounded period interest accrual minor	list of number
closingCapitalizedLoanMinor	Closing capitalized loan minor	number

json

{
  "input": {
    "observedOpeningLoanPrincipalMinor": 10000,
    "callerPeriodInterestBasisPoints": [
      1000,
      1000
    ],
    "observedEndPeriodInterestPaymentsMinor": [
      500,
      0
    ]
  },
  "output": {
    "roundedPeriodInterestAccrualMinor": [
      1000,
      1050
    ],
    "closingCapitalizedLoanMinor": 11550
  }
}

Limitations and assumptions

No principal repayment, inferred annual rate or tax rule is supplied.

Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries; string lists to 128 strings of at most 128 characters each. The rules above may impose smaller limits. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Whole Life Cash Value Surrender After Fees Calculator: Whole-life surrender proceeds deduct loan principal, accrued interest and fees from cash value. A negative balance signals deductions exceeding that value. For a complementary task, use LTC Inflation Protection Compound Option Calculator: Simple and compound LTC inflation riders grow different bases. Annual rounding can affect a compound projection over many years.

References

Policy Loan Interest Unpaid Accrual Calculator — tool.io

Similar or alternative tools

Whole Life Cash Value Surrender After Fees Calculator
Whole-life surrender proceeds deduct loan principal, accrued interest and fees from cash value. A negative balance signals deductions exceeding that value.
LTC Inflation Protection Compound Option Calculator
Simple and compound LTC inflation riders grow different bases. Annual rounding can affect a compound projection over many years.