how do you calcualte a payment for a loan.

[Guest]

The Pmt function does not return an answer that is even close. I am trying to
determine what the monthly payment ould be on 30 year laon of $9,620,320 with
a 8% interest rate.

 

[N Harkawat]

70,123.01

using
=PMT(8%/12,360,-9620320,0,1)

 

[SteveH]

A word of caution on calculating loan payments. It is important to
understand whether the payment is due at the beginning of the payment period
or at the end of the payment period. Most mortgages are due at the end of
the payment period.

For a payment due at the end of the payment period the formula should read
=PMT(8%/12,360,-9620320,0,0) which returns $70,590.50.

 

[Guest]

Thanks for the response. I appreciate it very much.