Guides
Loan interest and Xero, explained.
How to work out the interest on a loan, post it to Xero and read the schedule behind it, with worked examples you can check line by line.
01
How to post loan interest in Xero
The manual journal for a loan you made and a loan you received, step by step, with an example and the mistakes to avoid.
6 min read
02
How to calculate interest on a loan, day by day
The daily interest formula, why a 31-day month earns more than a 30-day one, and how to handle repayments and prime changes mid-month.
7 min read
03
Loan amortisation schedules explained, with an example
How equal monthly instalments split between interest and capital, the instalment formula, and a full 12-month worked example.
6 min read
04
Shareholder and director loans in Xero
Setting up a loan account for a shareholder or director, posting the interest, and the South African tax rules to know about low or no interest.
5 min read
05
Intercompany loans in Xero: both sides, same figures
Keeping a loan between group companies in step: matching accounts, mirror-image journals each month, agreeing the balances, and consolidation.
5 min read
Need a figure now? Try the free loan interest calculator. Already using Loanbooq? The support guides walk through every screen.