New YNAB converted Loan Account Interests amount incorrect
I converted my loan accounts from tracking to the new planner feature. The issue I now have is that the interest calculated is no way near the actual amount (interest % is correctly specified), and I can't seem to find a way to correct the interest amount. I need to be able to also report on monthly actual interest paid for tax purposes. How do I do these?
If you want 100% accuracy go back to using a tracking account.
The new loan feature is way too rigid. It is designed for one type of loan in one country using one payment frequency and is therefore pretty useless for the rest of us.
I like where it's heading, but they need to enable us to change the interest calculations or at least the interest amount each month at a bare minimum.
Hi, there! Right now, there isn’t a way to edit the interest calculations in a Loan account. You can, however, update the account’s balance if the interest charge makes that balance inaccurate.
YNAB uses an amortization formula to calculate interest, compounding interest monthly (regardless of the type of loan) by taking the interest rate, dividing by 12, and multiplying with the current balance. If you're seeing inaccurate interest amounts consistently, I assume there's something about the way your lender processes interest that is different from YNAB's assumptions (your lender rounds interest, the timing when interest is applied is different, etc.).
Because you're in a situation where you'll use YNAB to report interest for tax purposes, I think using a tracking account will be better for your needs. Please reach out to our support team if you'd like help transitioning back to a tracking account.
If you're interested, we would appreciate learning how your lender manages interest so we can make loan accounts even more helpful in the future. If you’d like to share what's going on and what you need with our Product team for consideration, send us a Feature Request.