Hi all,
Does anyone know the formula the banks use to calculate the repayments over so many years with the interest rate?
Thanks
Karl and Rita
The future belongs to those who believe in the beauty of their dreams. – Eleanor Roosevelt
Hi Karl & Rita,
Sorry don’t know the formula, although I agree it would be handy to know. I currently use one of the internet calculators such as realestate.com.au but I am not always at my computer.
So, does someone know it?Sue[biggrin]
“Be careful not to step on the flowers when you’re reaching for the stars”
This is the method I use
its no big secret,
dont know why people guard it so convertlyformular for interest only payment if you need to do principal and interest just ad 2% more[ that should cover the principal part]
use your calculator…put in the loan amount [say] $150000 x by the interest rate [say] 6.99%
divide that answer by 365 days in the yr x that answer by 31 days in the month=$890 interest only payment for the month…
this is not exact but close enough ..as some months there are 29/30/31 days.
its EZY when you know how[biggrin]
hope that helps
EZY
[email protected]
[buz2]Alternatively you can buy a business/financial calculator. They cost some ~ $100 new but here is one for less.
http://cgi.ebay.com.au/ws/eBayISAPI.dll?ViewItem&category=3294&item=5701968887&rd=1&ssPageName=WDVW
PS here is one for free:
http://www.finance.cch.com/sohoApplets/FinCalc2.html
May God prosper you always.[biggrin]
MarcEzy,
Add 2% to the interest rate, or to the final result?
thanks
The future belongs to those who believe in the beauty of their dreams. – Eleanor Roosevelt
2% is just a guess some banks do 1.1/2%
email me and I will send you a calculator for your computer.
but you add it on when doing the caluclation example the loan is 6.99 add 2% puting the interest rate at 8.99%you have to put the Lbefore the earn
Learn[buz2]
its EZY
email me on [email protected]Hi All,
I created a calculator on excel just recently for a similar post, I can email it just PM me the request or email me. I simply used the PMT function on Excel, it saves buying a financial calculator or having to be online for those websites.
It calculates P & I repayments EXACTLY, I’ll add an Interest Only Function in there as that calculation is really easy, just multiply the loan amount by the interest rate, then divide it by 1200 to get the monthly repayment.
Liz
Mortgage Lender
Hi Lizzy,
Thanks for your post. I originally posted to Karl and Rita’s question, stating that I too had devised an Excel spreadsheet, which albeit basic, was helpful as a guide. However, as I felt that the only thing lacking in my “masterpiece” [laugh4] was the P & I part of the calculation, I deleted my post (so as to avoid any misunderstandings due to its incompleteness).
So Karl and Rita, if you think you may have read a reply post to this thread from me, offering you a copy of my spreadsheet for a Loan Repayment formula, you saw correct (your eyes weren’t trickin ya!!!) but as I said I deleted virtually straight away, for fear of it not being EXACTLY what you had asked for.
I believe that Lizzy, is not only qualified, but has probably done her homework in greater detail, and as such her spreadsheet formula would serve your purpose with greater accuracy.
BTW Lizzy, I would really like a copy of your formula and will PM you with my request, plus I can send you what I’ve concocted and maybe you can tell me where I goofed off!!!!
Cheers,[biggrin]
Jo
Karl and Rita,
I take it back, forget about the post of mine, which you may or may not have seen, anyway!!!.
Lizzy just send me her AWESOME repayment calculator, and believe me, the girl has talent!!!!
I am sooooooooo ashamed, [blush2] mine looks like dog do-do in comparison [blush2][crying][eh] And to think I could have been sooooo stupid to even consider sending you what I had put together……what a joke!!!! [laugh4]
Do PM Lizzy for her Repayment Calculator……..it is simply (as is it’s creator) “spot on”!!!!
Cheers,
Jo
Shucks Jo [happy3] and I’ll publicly announce your modesty, you had put alot of effort into your spreadsheet that most people could not do themselves, and it made sense to me.
Jo has also helped me create a capital growth calculator for those wishing to see the effects of an average yearly price growth has over the term of 20 years. It’s interesting actually (suprised myself).
PM’s or email requests for either are welcome, although I’m not always online I will get it to you as soon as possible.
Liz
Mortgage Lender
Don’t believe her……if you saw the difference between mine and hers, you’d wet yourselves (over my one)!!!!
Jo[blush2][blink][blush2]
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