I need a Line of Credit Calculator


T

Titanium

I know this may be a bit of a 'big one' but, I really need a calculator that
will allow me to have a fixed interest rate, and then allow me to enter
payments or withdrawls to determine the current balance of the line of
credit. Anyone up for making such a beast for me? I am just horrendus at
loans and that sort of thing.
I don't know if for example withdrawing money at mid month affects the
actual interest rate or not, or paying late, but frankly i'm not worried
about _that much_ accuracy. Just the calculations.

I was thinking A2 would be the interest rate: 10.9%, A5 could be the start
of the dates, B6 could be the first withdrawl from the line of credit. C6
would be blank? as not one month has past but B7 would be the payment made,
or withdrawl again, C7 would be the current full amount due with interest and
so on.

Anyone up for this? I really just need the formula to put in the C column. :)
I could really use your assistance on this.

Please and thank you? :) *SMiLe*
 
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F

Fred Smith

Use seven columns as follows:

A: Month
B: Starting Balance
C: Withdrawals
D: Payments
E: Interest Rate
F: Interest Charged
G: Closing Balance

Using a column, rather than one cell, for interest rate allows you to handle
the situation where the rate changes, which typically happens with LOCs when
the prime rate changes. The formulas are:

A2: Enter starting date, format as mmm-yy
B2: Enter opening balance
C2: Enter withdrawals for the month
D2: Enter any payments you made in the month
E2: Enter current rate charged
F2: =b2*e2/12
G2: =(b2+c2-d2+f2)
A3: = date(year(a2),month(a2)+1,day(a2))
B3: =g2
E3: =e2
F3,G3: copy from row 2

Copy down as far as you want.

As requested, this is not perfectly accurate, because it doesn't account for
which day in the month you make the payments or withdrawals. But it should
be close enough.

Regards,
Fred.
 
D

Duke Carey

A little info in addition to Fred's post:

*Typically* the amount of interest you get charged is based on the average
balance of the loan for the billing period - typically a calendar month. The
average balance takes into account the number of days the account is at a
particular balance and the number of days in the month. Thus, assume your
loan has a balance on the 1st of the month of $5,000. You draw out more
money on the 8th, say $500, and make a $750 payment on the 15th. Assume a 31
day month.

So, the balances are as follows:
$5,000 - 7 days (1st thru the 7th)
$5,500 - 7 days (8th thru 14th)
$4,750 - 17 days (15th thru the 31st)

so... the average balance for the month is

[ (7*5000)+(7*5500)+(17*4750) ]/31 days = $4,976

The final question is how does the lender charge interest? Is it on an
Actual/Actual or a 30/360 or even an Actual/360. There are others too, some
less common than others, but the portion to the left of the / sign indicates
how you count the days in the month, while the portion to the right indicates
how you count the days in the year. That dictates how the annual rate is
translated into a monthly rate. So, in the case of Actual/Actual, your 5.49%
annual rate becomes a monthly rate of .466% (5.49%*31/365) and in the case of
30/360 it becomes a monthly rate of .458% (5.49%*30/360). If you apply those
rates to the average balance calculated above, $4,976, the monthly interest
charges are $23.20 and $22.76, respectively.
 
T

Titanium

To be honest, I'm not positive how they charge interest, I would assume in a
standard fashion. As I mentioned in my first post, I'm not looking for
picture perfect accuracy. What I'm actually trying to do is to enter a number
of payments and withdrawls to roughly determine what my ex-wife should have
had left on her balance. We are in the midst of a court battle and she seems
to be pulling large amounts of money from a magical hat or something. If I
enter her old payments when we were together I can at least gauge roughly how
much she should have had left after we split up. Silly as it sounds, this
woman is a walking fraud looking for a place to happen, and I need to be able
to prove that this magical hat was actually her employer paying her under the
table. :) I can always call the lender to find out how they calculate their
interest charges though. They don't need to know i'm not a client :)

Thanks for the additional input. Much appreciated!

Duke Carey said:
A little info in addition to Fred's post:

*Typically* the amount of interest you get charged is based on the average
balance of the loan for the billing period - typically a calendar month. The
average balance takes into account the number of days the account is at a
particular balance and the number of days in the month. Thus, assume your
loan has a balance on the 1st of the month of $5,000. You draw out more
money on the 8th, say $500, and make a $750 payment on the 15th. Assume a 31
day month.

So, the balances are as follows:
$5,000 - 7 days (1st thru the 7th)
$5,500 - 7 days (8th thru 14th)
$4,750 - 17 days (15th thru the 31st)

so... the average balance for the month is

[ (7*5000)+(7*5500)+(17*4750) ]/31 days = $4,976

The final question is how does the lender charge interest? Is it on an
Actual/Actual or a 30/360 or even an Actual/360. There are others too, some
less common than others, but the portion to the left of the / sign indicates
how you count the days in the month, while the portion to the right indicates
how you count the days in the year. That dictates how the annual rate is
translated into a monthly rate. So, in the case of Actual/Actual, your 5.49%
annual rate becomes a monthly rate of .466% (5.49%*31/365) and in the case of
30/360 it becomes a monthly rate of .458% (5.49%*30/360). If you apply those
rates to the average balance calculated above, $4,976, the monthly interest
charges are $23.20 and $22.76, respectively.

Titanium said:
I know this may be a bit of a 'big one' but, I really need a calculator that
will allow me to have a fixed interest rate, and then allow me to enter
payments or withdrawls to determine the current balance of the line of
credit. Anyone up for making such a beast for me? I am just horrendus at
loans and that sort of thing.
I don't know if for example withdrawing money at mid month affects the
actual interest rate or not, or paying late, but frankly i'm not worried
about _that much_ accuracy. Just the calculations.

I was thinking A2 would be the interest rate: 10.9%, A5 could be the start
of the dates, B6 could be the first withdrawl from the line of credit. C6
would be blank? as not one month has past but B7 would be the payment made,
or withdrawl again, C7 would be the current full amount due with interest and
so on.

Anyone up for this? I really just need the formula to put in the C column. :)
I could really use your assistance on this.

Please and thank you? :) *SMiLe*
 
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L

LauriNan

Okay, so if I have a loan base on 360 day year/ 12 - 30 day months, and I
wanted to calculate my interest from 6/10-10/7 @ 7.25% & then 10/08-11/15 @
6.5% .. .what formula do I use to calculate my difference in dates?

Duke Carey said:
A little info in addition to Fred's post:

*Typically* the amount of interest you get charged is based on the average
balance of the loan for the billing period - typically a calendar month. The
average balance takes into account the number of days the account is at a
particular balance and the number of days in the month. Thus, assume your
loan has a balance on the 1st of the month of $5,000. You draw out more
money on the 8th, say $500, and make a $750 payment on the 15th. Assume a 31
day month.

So, the balances are as follows:
$5,000 - 7 days (1st thru the 7th)
$5,500 - 7 days (8th thru 14th)
$4,750 - 17 days (15th thru the 31st)

so... the average balance for the month is

[ (7*5000)+(7*5500)+(17*4750) ]/31 days = $4,976

The final question is how does the lender charge interest? Is it on an
Actual/Actual or a 30/360 or even an Actual/360. There are others too, some
less common than others, but the portion to the left of the / sign indicates
how you count the days in the month, while the portion to the right indicates
how you count the days in the year. That dictates how the annual rate is
translated into a monthly rate. So, in the case of Actual/Actual, your 5.49%
annual rate becomes a monthly rate of .466% (5.49%*31/365) and in the case of
30/360 it becomes a monthly rate of .458% (5.49%*30/360). If you apply those
rates to the average balance calculated above, $4,976, the monthly interest
charges are $23.20 and $22.76, respectively.

Titanium said:
I know this may be a bit of a 'big one' but, I really need a calculator that
will allow me to have a fixed interest rate, and then allow me to enter
payments or withdrawls to determine the current balance of the line of
credit. Anyone up for making such a beast for me? I am just horrendus at
loans and that sort of thing.
I don't know if for example withdrawing money at mid month affects the
actual interest rate or not, or paying late, but frankly i'm not worried
about _that much_ accuracy. Just the calculations.

I was thinking A2 would be the interest rate: 10.9%, A5 could be the start
of the dates, B6 could be the first withdrawl from the line of credit. C6
would be blank? as not one month has past but B7 would be the payment made,
or withdrawl again, C7 would be the current full amount due with interest and
so on.

Anyone up for this? I really just need the formula to put in the C column. :)
I could really use your assistance on this.

Please and thank you? :) *SMiLe*
 
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