Finding Interest Rate Using Loan Constant - Iterative Calculation
Apr 9, 2014
I have a created a Data Chart Below. A - C are the columns and 1-7 are the rows. I have hard-coded the equation in cell B5 that I am using.
What I want to do is input an number into B3 that automatically makes Cell B5 equal to Cell C1. Is there a process in excel you can use to do this. Or do you just have to use trial and error?
A B C
1Loan Amount$10,500,000 0.0730041581143804
2Term 10 years
3Rate
4Amortization30 years
5Constant (K) =PMT(B3/12,(B4*12),-1000)*0.012
6Annual Payment$766,544
7Monthly Payment$63,879
Example is attached.
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Aug 27, 2008
I have a calculation I do that calculates a clients "effective interest rate" if they make extra payments towards principal.. Calculation works fine.. However, I am now trying to figure out how to amend that code if it's an interest only loan, anyone have any ideas?
Here is the effective rate calcs on a random normal amortization loan:
this is in B2, and answer is 7%
=RATE(B4*B5,-((B3+B7)/B6),B7)*12
B3 = Total*Interest 279017.8
B4 = #*Years*in*Loan 30
B5 = #*Payments*/*Year 12
B6 = Total*Payments 360
B7 = Beginning*Principal 200000
B8 - Ending*Balance 0
problem is when someone is on an interest only loan they pay more interest than a normal amortization because they are not reducing the principal in the first x number of years. So I need to compare the interest only effective rate to an interest only loan.
Here is the example I'm working on... A client's loan is the following:
Loan amount - 131,538
interest rate - 6.15
30 year amortization
10 years interest only
normal client would pay an interest only payment of 674.13, then after i/o period would go to 953.80 for last 20 years of the loan, and they'd pay about $178k in interest.. Now if that client pays an extra 1,000 per year, I can calculate the amount of interest they'd accrue, but have no clue how to back into the "effective interest rate", basically that says you are paying the same amount of interest as someone with a x.xx% interest only loan.
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Jan 31, 2014
I currently use goal seek to calculate an interest rate for a loan product. My problem is i would like to have the same function but not through a goal seek. In goal seek i have to set the value i want to achieve but ideally i want it to calculate automatically
I have attached a workbook with details. I use a loan amortization schedule to calculate the interest from parameters set on sheet 1
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Jan 26, 2014
I have created a excel sheet here i want the total interest charged for three months in 3rd mnth interest charged column, if i select 7 mnths term total interest charged for 7 months should come in 7th month interest charged colum, if it is 13 months total interest for 12 months in 12th month interest column and remaining 1 month interest in 13th month interest charged column
INTEREST CAL.xlsx
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Mar 4, 2014
I have a capital lease amortization schedule with annual increases to monthly rent that I am trying to solve for an interest rate such that the balance nets to zero at the end of the term. I am calculating on a monthly basis; in other words, principal minus monthly payment plus monthly interest expense equals ending monthly balance is calculated in each row each month. The present value is known, payment term is known, future value is zero, and the payment amounts increase annually. These assumptions may change for new leases so ideally the solution would be dynamic, adjusting for shorter/longer terms, etc. Here is an example of my assumptions:
Payment start date: 8/1/13
Term end date: 10/31/2025
Rent length in months: 144
1st months rent: $500,000 - payments are due at the beginning of the month and are paid monthly
Annual rent escalation: 3% - i.e. 1st 12 months is $500k/month, 2nd 12 months at $515K, etc.
Beginning NPV: $75M
Ending value: $0
Imputed annual interest rate: UNKNOWN
I'm not sure if this is relevant, but the monthly payment is allocated between principal and interest. Monthly interest expense is calculated as the current balance * (imputed interest rate / 12).
Currently, I've plugged the interest rate such that my ending balance is 0, however I was hoping to calculate it on the fly as opposed to manually plugging it.
how to calculate annual interest rate with these inputs? Is there a way to make the rate function work with payment increases?
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Jan 17, 2014
three people with different amounts of money. Each 'turn', they take 10% of what they have and pass the rest to the players either side of them. The amount they pass to each varies, but that isn't important.
The problem is that I need some way to record the 10% (or 20%, or 30%, or whatever) that they take off on each iteration. Currently the iteration will simply reset the value in the field. So if they had $100 in iteration one, it reads $10. But another iteration (with the amount of money in the loop decreasing), it changes to a lower value and the '$10' is lost. Is there any way you can have a formula that takes a value from the iteration each loop and isn't in turn changed each time? I basically just want to have 'value loop 1'+'value loop 2'+'value loop 3', etc. As it stands I lose the information.
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Jan 26, 2008
I need to perform an iterative calculation that will continue until the value is below a certain number. For example. I need to perform the following calculation.
A=M*(X-Y)
if A is less than B (some pre defined value) then the calculation is ok. If A is greater than B then I would like to reduce the value of X by 1 until A becomes less than B. B, M, X, and Y are all values entered into cells in the spread sheet. At the end of this I would like to display the value of A and the new value for X in a cells on the spread sheet.
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Aug 2, 2014
I have been loaning my brother money over the past 14 months. The loans have been in the form or $1000 per month plus random payments for one-off expenses like doctors fees. He's not paid anything back yet but we want to know what the total owed is for interest of 10% per annum.
I can easily create a table with payments I've made and the dates with a running total of how much I've paid but how to I create a running balance of what he owes over time based on adding in interest. This might end with a one-off payment in a couple of months, I'd like to calculate what is owed there as a minimum.
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Mar 6, 2007
Is there a function that calculates what interest rate is needed to turn a $2000 investment into $9000000 in 30 years based on compounding interest?
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Nov 8, 2008
Some years ago I came across a formulae to calculate Daily Interest on a Building Society Savings account in the UK. I have used this since but find my calculations never work out the same as my BS, although to my advantage! It is =B3*B4/360*DAYS360(B5,B6,TRUE) Where:
B3=Capital
B4=Interest Rate
B5=Starting Date
B6=Finishing Date
For some reason the formulae uses 360/year and not 365/year. Using both still gives wrong answer.
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Sep 15, 2013
find attached herewith a sample file.
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Aug 18, 2009
If I invested $350 per hectare into a project and at the end of 12 years that investment yielded me $150,000, what would my rate of return be over the life of the project?
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Jan 27, 2007
I am trying to calculate the effective annual interest rate earned on an investment and find the results are close but not really accurate. I suspect because I have not included the frequency of interest in my existing formula
r = n * nt root (A/P-1)
where;
r = the effective interest rate
n = the number of times interest is added per year
t = the total number of years
A = the current value
P = the original value
The 2 problems I face are;
1. Confirming this formula would provide the correct answer (need maths expert here) &
2. How would "nt root" (as in sqr root, but using the product of the years and frequency) be used in Excel
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Feb 2, 2014
I would like a function which works like the NPV function except that the interest rate should be variable and a range rather than a single number.
Is it possible to see the code for the excel NPV function so that I can modify it?
Or alternatively has seen such a function?
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Jul 6, 2013
I keep coming across bonds having different annual interest rates and different compounding frequencies (quarterly, half yearly and yearly).
I know there is a YIELD function, but it requires so many inputs. I was wondering whether we can calculate cumulative yields just from annual interest rates, compounding frequency and investment duration?
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Feb 5, 2008
I have a situation where I have to determine the required size of a deposit from which constant withdrawals are to be made until the deposit runs out to ZERO. The deposit earns interest at a fized rate, capitalized monthly after each withdrawal had been made.
In my example case, the target month (The actual cell that needs to have a value of ZERO (when the deposit runs out), or the "Range") is found in cell G16. In another situation, it may be found in cell G19 etc, depending on the situation.
It is this changing of the target cell (the one that needs to be ZERO) that has me stumped. I've been thinking of using VLOOKUP (not trying to lead you ;-)) to determine the actual position of the cell that need to have a value of zero but do not know how to build this into the VBA code of Goalseek. This target cell in the Goalseek code should be the cell in column G opposite the figure 1 in column A.
In my example I simply typed in a figure 1 in column A - in the actual spreadsheet the position of this figure is calculated with a formula and its position moves from situation to situation. If the 1 is in cell A19, the target cell, whose value should be ZERO, will then be cell G19..............
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May 25, 2009
The way I have this sheet setup is to calculate a 20% fee off the interest earned column "D". Say you earned 6.5% on a beginning balance so the interest earned is in col "D". This works fine for a 20% fee but I need the fee to calculate a 10% fee if the interest in column "C" hit 4% or below and it also needs to be able to calculate a 20% fee if the interested earned is above 4%.
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Oct 3, 2013
1. Want to findout in which stage the loan is ? Eg: 1212321231 is in PROCESSING STAGE because the date appears under processing .
2. want to find out how many stages it has paased ? Eg: Loan 1212321231 has passed 3 stages and now in 4th stage(processing).
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Apr 28, 2008
I have a macro that formats a spreadsheet to show outstanding invoices, grouped and subtotalled by month. To add to this I need VBA code that will use the subtotals to calculate interest on overdue accounts.
Interest becomes due a calender month after the month in which the invoice is dated. So for example a January invoice would start to accrue interest on 1st March.
Below is the subtotals code (sadly the totals don't adjust if data is added or removed but perhaps that is another question for another day.)
Dim LastRow As Long
Dim NextMonth As String
Dim R As Long
Dim Rng As Range
Dim SubAmount As Currency
Dim ThisMonth As String
Dim TotalAmount As Currency
Dim Wks As Worksheet
Set Wks = Worksheets("Reconciliation")
LastRow = Wks.Cells(Rows.Count, "A").End(xlUp).Row
Set Rng = Wks.Range(Cells(2, "A"), Cells(LastRow, "D"))
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Mar 15, 2007
In a financial environment we have a calculator which uses iteration to allow for a cost being added to loan amount where the cost is based on the total loan amount. Iteration is set to 100 iterations with max change .001
On one PC the first time the calculator is opened it gives a particular (incorrect) result. If the input cells are cleared and the data re-entered, it gives the correct result. This only happens on one particular PC. Is there some other setting , other than the iteration setting, that would cause this?
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May 8, 2012
I have a userForm (Form1) that contains a persons name that I would like to reference in a separate UserForm (Form2). In the separate UserForm (Form2) I need to reference this persons name many times, so I was wondering if there was a was to declare this name in the separate UserForm (Form2) as a constant. Only thing is that a constant, to the best of my knowledge, must be an expression and not a variable. Mainly, I'm trying to avoid declaring the myName variable in each Sub within Form2, which it will be needed for a ton of Sub's.
Code for Form2: Const myName As String = Form1.txtName.Value
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Dec 29, 2013
I have a problem calculating a total interest for an input period that has different interest rates. You can see the attached file: INTEREST.xls
I have used a function but the result comes out wrong. Can I fine tune it or do I have to change my method of calculating.
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Apr 21, 2014
What I want to do is place a lap time into 2 columns (representing each lap), then excel chooses the lowest number in the two columns on the same row, paste it into another column, and then automatically sort, while keeping the first column static for 1, 2, 3, 4, 5 etc
So what I want is
Column A | Column B | Column C | Column D | Column E
1 | Driver Name | 14.004 | 14.102 | 14.004
I want Column A to remain in tact, never changing, 1-50. I want Column E to hold the fastest lap time calculated from C and D. Then I want excel to automatically sort Column E from lowest to highest, while keeping Column B with a specific driver name in line with their respective lap times. Column A is not a 100% solid requirement, but auto sorting Column E after it's calculated the minimum value of C and D is.
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Jun 4, 2007
The formula I am looking for would tell me what annual growth rate % I would need to achieve to make any investment reach a set target, for instance, what % of fixed annual growth would I need to make 200K grow to 750k in say 10 yrs or any time scale. I was given the formula below but Excel tells me it's wrong, I have tried putting 10 before ^ and the 10 after but to no avail, could some kind soul please put me straight.
r = 100((Y/X)^(1/n))-1)
So for X = 200, Y = 750, n = 10, we have
r = 100((750/200)^(0.1))-1) = 14.1309%
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Feb 13, 2014
From a chart in Excel I need to automatically calculate what the annual percentage growth rate is of a trend line. How to automate this in Excel? I've attached a sample so you can see what I'm trying to accomplish.
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Nov 30, 2009
I owe 15462 in the bank, currency dont matter here, that is what I owe right now, but I want to have a cell in the frontpage with the amount left, so can I make a line called =remaining-each month
the amount should then each month be substracted from the new month and so on, until the amount is 0
can this be done?
the second page in the spreadsheet has a post with monthly pays to the bank ...
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Sep 27, 2007
I'm working with a loan amortization worksheet (downloaded from Office Online). Unless I don't understand correctly, the date formula on the worksheet doesn't calculate the way I need it to. I'm not totally sure what the formula they use is doing. It does use a lot of named ranges.
If a user inserts the total "Number of Payments per year", then I want the date to return the proper payment date.
For instance, If the start date is 1/1/07 and the number of payments per year is 24 then the payment dates should be like
1/15/07
1/31/01
2/15/07
2/28/07
It should be the 15th and the last day of the month.
If I put 52 as the number of payments then I want the formula to set the payment dates to every Friday.
I'm still learning formulas so bare with me guys. Attached is the worksheet.
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Apr 19, 2006
I have 4 Loans of various interest rates, balances, and minimum payments.
Assuming I have a certain amount of money to pay out each month, how can I minimize the total amount I pay over the lifetime of the loans?
Given:
Total Monthly payment: M
Interest Rate for each loan: R1, R2, R3, R4
Initial Principal for each Loan: P1, P2, P3, P4
Minimum Monthly Payment: Min1, Min2, Min3, Min4
Each month, how should I distribute M over the 4 loans?
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Jan 8, 2007
I have used the PMT function but this gives me the total to pay per month.
I want to know what the repayments would be and also allow me to add in each one of the periods and extra repayment option.
So if in the year I wanted to pay an extra $100 per month, I would put $100 next to each period as in a particular period(s) I might not have to put in there but want to predict what the amount owing on the house is.
Is this possible or is this too complicated.
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Feb 20, 2008
There are various references and links to " mortgage calculators;" though they are specific to the US dollar. Is the formula still the same, irrespective of the currency and why does it come across as quite a complex calculation? i have been taksed with designing a "calculator" and don't seem to know where to start as the currency issue is confusing me.
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