Finding Cumulative Interest

[jrmfzf]

I know that excel has a function call CUMIPMT() that will return the
total interest paid on a loan given a rate, initial value, and range
of periods that you want to find the sum in. Is there a function out
there; however, where I can provide the monthly payment also. I'm
wanting to see how much interest I save over a period by making extra
payments on the principal and want to do it with a function rather
than expanding everything out in an amortization table. Does anyone
have any suggestions on how to do this or where I can go to find out
more. Thanks.

 

[Jim Cone]

I believe the PMT function is what you are looking for.

Or you might try the free "Calculate Payments" Excel add-in.
You provide 3 of... Loan Amount, Payment, Term, Interest Rate
and it calculates the fourth. One click transfer of displayed results
to the worksheet.

Download from... http://www.realezsites.com/bus/primitivesoftware
No registration required.
--
Jim Cone
San Francisco, USA


<[email protected]>
wrote in message
I know that excel has a function call CUMIPMT() that will return the
total interest paid on a loan given a rate, initial value, and range
of periods that you want to find the sum in. Is there a function out
there; however, where I can provide the monthly payment also. I'm
wanting to see how much interest I save over a period by making extra
payments on the principal and want to do it with a function rather
than expanding everything out in an amortization table. Does anyone
have any suggestions on how to do this or where I can go to find out
more. Thanks.

 

[Fred Smith]

Interest paid over any period is equal to total payments minus the principal
paydown..

If you have a $100,000 mortgage, payments are $1,000 per month, you pay for 24
months, and the balance owing at that time is $85,000, you've paid $9,000 of
interest (24x1000-(100000-85000)).

To calculate the balance owing at any given period, simply use the FV function.