Posted by Nota Bene on April 27, 2006 at 12:12:23:
In Reply to: Re: Amortization Schedules are often INACCURATE posted by Michael Morrongiello on April 26, 2006 at 23:03:51:
I've been writing my own note amortization calculator, using Excel. I notice that my numbers are frequently different from numbers I get from websites offering calculators. Sometimes they're off by a penny or more. I attribute it to differences in rounding. Because Excel will hold the numbers internally to who knows maybe 32 digits, I believe my version is more accurate than those that simply truncate digits. ie. if my number is 123.456789987654 and the other calculator truncates to 123.45 then mathematically mine is more accurate when that number is used in subsequent calculations. However, if the lender uses software that doesn't match mine, clearly the lender is what the borrower has to go by. This is not to imply anything Michael said is incorrect, I'm just relaying my experience. Of course, my calculator might just be plain wrong, as could be Excel whose functions I'm using.