# Loan repayments

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User permissions: Budgets & Forecasts and Manage Budgets & Forecasts
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You can use a [Manual Entry tab](https://docs.phocassoftware.com/budgets-and-forecasts/owner-and-administrator/add-worksheet-tabs/manual-entry-tab) to manage your loan data and calculate the loan repayment and interest amounts per period. You can then use that data as the basis of a loan financing [mini-driver](https://docs.phocassoftware.com/budgets-and-forecasts/owner-and-administrator/add-worksheet-tabs/balance-sheet-cash-flow-tabs#use-mini-drivers-in-the-balance-sheet-budget) for connecting the Profit and Loss and Balance Sheet. 

The video below shows an example of how to do this. The example uses the following data:

* Loan Amount: $1,000,000
* Repayment Term: 10 Years (120 Months)
* Interest Rate: 6.25%
* Start Month: December

The Manual Entry tab setup is as follows:

<table><thead><tr><th width="189">Row</th><th>Action</th><th>Details</th></tr></thead><tbody><tr><td><strong>Interest Rate</strong></td><td>Enter the interest rate</td><td>6.25% per month</td></tr><tr><td><strong>Remaining Loan Amount</strong></td><td>Use a formula to reference to the Loan Amount on the Balance Sheet tab</td><td>($1,000,000 in the first year, starting in December)</td></tr><tr><td><strong>Interest</strong></td><td>Use a formula to calculate the interest</td><td>= Remaining Loan Amount * ((Interest Rate / 100) / 12)</td></tr><tr><td><strong>Monthly Payment Amount Total</strong></td><td><p>Use this logic to calculate the monthly payment:</p><p>= (P * r * (1 + r)^n) / ((1 + r)^n - 1)</p><p>Where:</p><p>P is the loan amount (principal)<br>r is the monthly interest rate (annual interest rate divided by 12)<br>n is the total number of payment periods (number of years multiplied by 12)</p></td><td>= (1000000 * 0.0625 / 12 * (1 + 0.0625 / 12)^120) / ((1 + 0.0625/12)^120 – 1)</td></tr><tr><td><strong>Principal</strong></td><td>Use a formula to calculate the principal</td><td>= Monthly Repayment Amount Total - Interest</td></tr></tbody></table>

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