Updated: 31 October 2010

Use R78PAYOFF to calculate the payoff amount for a loan or lease using the Rule of 78.

SELECT [westclintech].[wct].[R78PAYOFF] (

<@IntAmt, float,>

,<@NumPmts, int,>

,<@PeriodNo, int,>

,<@Pmt, float,>)

the total interest over the life of the loan. You can use the TOTALINT function to obtain this value. *@PV* is an expression of type **float** or of a type that can be implicitly converted to **float**.

the total number of payments to be recorded over the life of the loan. *@NumPmts* is an expression of type **int** or of a type that can be implicitly converted to **int**.

the period number for which you want calculate the payoff amount. Rule of 78 payoffs can only be calculated on regular payment dates. You can use the NPNO function to calculate the next payment date. *@PeriodNo* is an expression of type **int** or of a type that can be implicitly converted to **int**.

the payment amount. You can use the LPMT function to calculate *@Pmt.* *@Pmt* is an expression of type **float** or of a type that can be implicitly converted to **float**.

float

Â· *@IntAmt* must be greater than zero

Â· *@NumPmts* must be greater than 1

Â· *@PeriodNo* must be greater than 1 and less than *@NumPmts*

Â· *@Pmt* must be greater than zero

Â· The Rule of 78 calculation is based on the number of payments, not the number of interest period. Thus odd long first periods do not affect the number of payments, though the first payment may include interest for multiple periods.

Calculate the payoff amount, using the Rule of 78, for a 24,000 loan that originated on 8/15/2009 at a rate of 5.9%, with payments on the first of every month for 36 months, commencing on 9/1/2009, paid off on 12/1/2010. The monthly payment is 727.37

SELECT wct.R78PAYOFF(

wct.TOTALINT(

36

,727.37

,24000

,0

) --Total Interest

,36 --Number of Payments

,16 --Payoff Period Number

,727.37 --Monthly Payment

) as R78PAYOFF

This produces the following result.

R78PAYOFF

----------------------

14516.7986486486

(1 row(s) affected)

If you do not know the payment amount, you can use the LPMT function to calculate the amount.

SELECT wct.R78PAYOFF(

m.TOTALINT --total interest on the loan

,36 --number of loan payment

,16 --payoff payment number

,m.PMT --payment amount

)

FROM (

SELECT wct.TOTALINT(

36 --Number of periods

,n.pmt --Payment Amount

,24000 --Loan Amount

,0 --Future Value

) as TOTALINT

,PMT

FROM (

select ROUND(wct.LPMT(

24000 --Loan Amount

,'8/15/2009' --Loan Start Date

,.059 --Annual Interest Rate

,'9/1/2009' --First Payment Date

,36 --Number of payments (5*12)

,12 --Number of payments per year

,NULL --Days in year (defaults to 360)

,NULL --FV (defaults to 0)

,NULL --IntRule (defaults to 'A' meaning actuarial)

), 2) as pmt

) n

) m

This produces the following result.

R78PAYOFF

----------------------

14516.7986486486

(1 row(s) affected)