Home → General Questions →

Calculated Mortgage Payment

• Edit

steve_hall1

06 Jan, 2026 03:33 PM

Hi all,

I have recently remortgaged and want to track my mortgage on MoneyDance. I've entered the mortgage amount and the interest rate but the calculated payment isn't correct. If I put a manual payment in instead, the split between capital repayment and interest doesn't match. Is there a way I can manually enter both the capital and interest amounts so that it all matches?

Thanks

Steve

1. Support Staff 1 Posted by Maddy on 06 Jan, 2026 04:33 PM

   

   Hi Steve,
   Thank you for contacting Moneydance support.

   Firstly, you should select the account you made the mortgage payment from. Enter a new transaction to reflect the payment, and specify the mortgage account within the 'Category' field of the transaction. This will create a transfer of funds from the account you're using into the mortgage account, and you'll see the mortgage account balance will decrease.

   Moneydance does not support importing data or entering transactions into mortgage accounts. In other words, if you are making your mortgage payments from one of your bank accounts, when you download transactions for that bank account it will include debits for the mortgage payments.

   When you categorize these mortgage payments in the bank account, with the 'mortgage account' as the category, the corresponding matching entry in the mortgage account will be created.
   So, you will have to enter the transaction from the account on the other side as Moneydance does not allow transactions to be initiated from within mortgage account.

   ---

   You should click on your mortgage account from the left Side Bar and navigate to Account->Edit Account. Adjust the Escrow there. The next payment reminder should then reflect the proper amount.

   Additionally, if you have a mortgage account in Moneydance, Splits of payments are only handled automatically if a reminder is created within the mortgage account. Moneydance cannot perform any calculations if you are just entering a transfer transaction in a bank account by entering the mortgage account as the category.

   Lastly, could you select your mortgage account in the left side bar and navigate to Account->Edit? You should ensure the balance adjustment field is 0.

   I hope this information is helpful. Please let us know if you have further questions or need more assistance.

   --
   Maddy, Infinite Kind Support

   • Edit

2. 2 Posted by steve_hall1 on 06 Jan, 2026 04:43 PM

   

   I'm sorry, I don't understand. What figure should I be entering the Escrow amount and what should I select as the Escrow account?

   • Edit

3. 3 Posted by steve_hall1 on 06 Jan, 2026 04:53 PM

   

   Using some made up figures as an example, lets assume that the mortgage amount is £120,000
   The monthly repayment is £1020 and the monthly interest is £180.
   What figures should I enter where?

   Thanks

   • Edit

4. Support Staff 4 Posted by Maddy on 06 Jan, 2026 05:01 PM

   

   It should be as follow:

   Loan amount/Principal: £120,000

   Monthly payment: £1,020

   Interest portion: £180

   Principal portion: £840

   Escrow account: Asset → “Escrow”

   Escrow amount: Only if part of the £1,020 (otherwise £0)

   Please keep us posted on your progress, Thank you!

   --
   Maddy, Infinite Kind Support

   • Edit

5. 5 Posted by steve_hall1 on 06 Jan, 2026 05:10 PM

   

   Thanks for your reply Maddy.

   So do I have to manually amend the Interest Portion and Capital Portion every month in the Transaction Reminder when I log the payment? I csn't see anywhere else where I can adjust the amounts.

   What is the Escrow for? If I amend the Capital and Interest to match the actual amounts then I don't understand what the Escrow function does?

   • Edit

6. Support Staff 6 Posted by Maddy on 06 Jan, 2026 05:17 PM

   

   You only use the Escrow field if:

   • Your monthly mortgage payment includes tax/insurance contributions

   • You want Moneydance to track that money separately

   • You want to record future tax/insurance payments correctly

   If your mortgage payment is just principal + interest, then your escrow amount is £0, and you don’t need the feature at all.

   --
   Maddy, Infinite Kind Support

   • Edit

7. 7 Posted by steve_hall1 on 06 Jan, 2026 05:57 PM

   
   
   

   But do I still need to manually adjust the split between capital and interest every month? 

   
   

   Sent from my iPhone

   
   On 6 Jan 2026, at 17:17, Maddy <[email blocked]> wrote:
   
   

    pre { width: 92%; margin: 10px 2%; padding: 5px 2%; background: rgb(239, 239, 239); border: 1px solid rgb(214, 214, 214); } blockquote { margin-left: 0px; padding-left: 1em; border-left-width: 5px; border-left-style: solid; border-left-color: rgb(204, 204, 204); }

   // Please reply above this line ================================================== From: Maddy (Support staff) You only use the Escrow field if: Your monthly mortgage payment includes tax/insurance contributions You want Moneydance to track that money separately You want to record future tax/insurance payments correctly If your mortgage payment is just principal + interest, then your escrow amount is £0, and you don’t need the feature at all. -- Maddy, Infinite Kind Support On Tue, Jan 06 at 09:10 AM PST, steve_hall1 wrote: Thanks for your reply Maddy. So do I have to manually amend the Interest Portion and Capital Portion every month in the Transaction Reminder when I log the payment? I csn't see anywhere else where I can adjust the amounts. What is the Escrow for? If I amend the Capital and Interest to match the actual amounts then I don't understand what the Escrow function does?

   Having trouble reading this? View this PRIVATE discussion online: Calculated Mortgage Payment. To unsubscribe and stop receiving emails from https://infinitekind.tenderapp.com, visit this page

   • Edit

8. 8 Posted by steve_hall1 on 09 Jan, 2026 06:04 PM

   

   Ok thanks

   But do I still need to manually adjust the split between capital and interest every month?

   • Edit

9. 9 Posted by steve_hall1 on 16 Jan, 2026 10:56 PM

   

   Hi Maddy are you able to answer the question above please?

   • Edit

10. 10 Posted by dwg on 16 Jan, 2026 11:08 PM

    

    Moneydance uses one of the most commonly used methods to calculate the principal and interest amounts, however there are multiple ways of calculating interest.

    Your institution may well have a different type of loan structure, I have seen different structures at the same institution depending on the type of mortgage loan offered.

    You need to decide if using a Moneydance Loan account works the best for you or if you should perhaps use a Liability account and use more traditional manual transactions with it, perhaps as a split transaction that you manually adjust as needed.

    • Edit

11. 11 Posted by steve_hall1 on 19 Jan, 2026 02:19 PM

    

    Thanks dwg,

    How would I enter a split transaction so that X amount went to reduce the balance and y amount was recorded as Interest?

    Thanks

    • Edit

12. 12 Posted by dwg on 19 Jan, 2026 08:37 PM

    

    Information on creating split transactions are in the Knowledge Base article:

    https://infinitekind.tenderapp.com/kb/register-and-transactions/entering-transactions

    • Edit