Overview

This module adds a new compounding method named Flat Rate to the loan calculation workflow. When selected, the loan schedule is calculated using a simple flat interest approach: total interest is computed as Loan amount × Interest × Loan term and then distributed evenly across payments. The change integrates into the existing compute wizard and payment schedule generation so users can preview.

Key Features

• New compounding option Flat Rate in the compute wizard selection
• Flat interest calculation: total interest = Loan amount × Interest × Loan term
• Per-payment interest and principal precomputed and applied consistently
• Seamless integration with existing loan preview and save actions

Usage

After installing the module, open the Loan Compute Wizard. In the Compounding Method dropdown you will find the new option Flat Rate. Select it, fill the loan amount, interest rate and term, then preview the schedule. The preview shows per-period interest and principal using the flat-rate approach. Save to persist loan lines.

Example: for a loan of 10,000 at 5% annual rate for 2 years, total interest = 10,000 × 0.05 × 2 = 1,000. If payments are monthly (24 payments), interest per payment = 1,000 / 24.

Screenshots

Dependencies

• account_loans
• account_accountant