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

Posted on 2013-01-14
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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
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Question by:steveurich
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Accepted Solution

Steve earned 500 total points
=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
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Assisted Solution

Steve earned 500 total points
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
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LVL 92

Expert Comment

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
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LVL 24

Expert Comment

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