how to calculate Loan Principal Amount

[mandarp22]

hi all

I want to calculate Loan Principal Amount when i have information of Interest Rate, Monthly EMI, No of payments.

i.e. Rate of interest is 18% P.A. for 5 Years (60 payments, 12 payments per year) and the EMI is 10157.38 now i want to calculate the Loan amount. can it be calculated with the help of PMT function?

Regards

Mandar

 

[Luke M]

PMT is more for calculating Payment amounts on a load. If you want the future value of a loan/investment, use FV. I think your formula would be:

=FV(18%/12,60,,-10157.38)

 

[srinidhi]

No one of the inputs required for PMT is Principel amount.


u mean u want to know how much u will be paying at the end of 5 years to the bank =(10157.38*60)= 609,443.

 

[mandarp22]

no if i get a loan of 400000 for 5 years with the interest rate of 18% P. A. then the EMI would be 10157.37 using =PMT(18%/12,60,-400000)

now how to calculate loan amount if i have the information that interest rate is 18% P. A. for 5 years EMI is 10157.37 then how do i get 400000

 

[Luke M]

Copied from http://www.ozgrid.com/forum/showthread.php?t=51660 , user h1h said:

use the PV function

=PV(5%/12;12*15;3900)

where 5% is the interest rate

12 is the number of payments per year

15 is the number of years

3900 is what you want to pay per month

the result will be a negative amount which represents your starting asset

So, for your case, the formula would be:

=PV(18%/12,60,10157.37)

 

[diawilliams]

Hi,

i am really impressed by this post as this post explains very useful method for calculating loan principal amount. This is very beneficial for calculating the principal amount for the loan. I will surely discuss this post with my friends also.

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