Solved

Excel. Calculating the amount of principle paid down at a certain period

Posted on 2013-01-14
4
206 Views
Last Modified: 2013-03-18
I am trying to calculate the amount of principle that would have been paid down at year 20 of a 30 year 4.25% loan of 313,000. I converted everything to months.

=PPMT(4.25%/12, 240, 30*12, 313000, 0, 0)

Which returns ($1,003.86) which can't be right. What am I doing wrong.

Thanks,

Steve
0
Comment
Question by:steveurich
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
  • 3
4 Comments
 
LVL 24

Accepted Solution

by:
Steve earned 500 total points
ID: 38775578
=PPMT(0.0425/12,240,30*12,313000,0,0)

This is the principle paid for the single payment

The total paid at month 240 = $162,686.41

Attached is the full 30 year calculation.
Payments.xlsx
0
 
LVL 24

Assisted Solution

by:Steve
Steve earned 500 total points
ID: 38775699
Attached is the file using the PPMT function to determine how much has been paid off from the principal over time.

you could use a single array formula...

=SUM(PPMT(0.0425/12,ROW(A1:A240),30*12,313000,0,0))
then enter using [ctrl]+[shift]+[enter]
Payments.xlsx
0
 
LVL 92

Expert Comment

by:Patrick Matthews
ID: 38775752
The_Barman seems to have this one well in hand, especially with that very clever array formula :)

You might also want to play around with the sample workbook in this article, especially if you want to model the impact of making additional principal payments:

http://www.experts-exchange.com/Software/Office_Productivity/Office_Suites/MS_Office/Excel/A_3331-Fixed-Rate-Loan-Amortization-Schedule-with-Optional-Extra-Principal-Payments.html
0
 
LVL 24

Expert Comment

by:Steve
ID: 38775769
Hi there Patrick, I think I owe you a beer as have been using Dictionaries all over the place.
Cheers :)
0

Featured Post

Salesforce Made Easy to Use

On-screen guidance at the moment of need enables you & your employees to focus on the core, you can now boost your adoption rates swiftly and simply with one easy tool.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Introduction While answering a recent question (http:/Q_27311462.html), I created an alternative function to the Excel Concatenate() function that you might find useful.  I tested several solutions and share the results in this article as well as t…
Access developers frequently have requirements to interact with Excel (import from or output to) in their applications.  You might be able to accomplish this with the TransferSpreadsheet and OutputTo methods, but in this series of articles I will di…
The viewer will learn how to use a discrete random variable to simulate the return on an investment over a period of years, create a Monte Carlo simulation using the discrete random variable, and create a graph to represent the possible returns over…
This Micro Tutorial will demonstrate how to use a scrolling table in Microsoft Excel using the INDEX function.

726 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question