Amortization Schedule with SOFR

[mrskidder]

Hello,

I am needing to create or find a template for an amortization schedule. The Maturity Date is 10/2/2028 (5 year loan). The terms state the following:

7.97% fixed. Variable 1-Month SOFR + 3.00% (8.340970% at 12/31/23)

I know that the SOFR changes daily but I am not understanding how the 12/31/23 rate was calculated and therefore I can't really figure out how to estimate an amortization schedule.

I am needing to create an estimated amortization schedule for our annual audit and will end up truing up the balances at the end of the year.

Any help would be appreciated.

 

[KRice]

Based on the precision of that value, I suspect that is an average SOFR rate. See this page for more details:

SOFR Averages and Index Data - FEDERAL RESERVE BANK of NEW YORK

www.newyorkfed.org

I think you could examine historical trends and estimate a range of likely SOFR rates, then run an amortization schedule at those extremes to at least bound the results.