I need to edit a loan amortization schedule to calculate payments using a 360
day basis instead of the standard 365. How can I edit a current template to
use 360 instead of 365 days in a year?
It is hard to say without knowledge of the formulas used in the loan
amortization template that you are using. Which template are you
using, and how did you find it? (URL or sequence of links that you
clicked on.)
Templates that I have seen already effectively use a 30/360 basis
model. That is, interest for monthly payments is determined by
dividing the annual rate by 12 and applying that monthly rate
uniformly to the outstanding balance of each month.
A template using an actual/365 or actual/actual basis model would
divide the annual rate by 365 (or actual days in the year), then apply
that daily rate to the number of days between payment due dates.
So you might see an interest formula of the form B1*r*(D2-D1)/365,
where "r" is the annual rate, "B1" is the previous balance, and "D1"
and "D2" are previous and current payment due dates. If that's the
case, change that formula to something like B1*r/12.
HTH.
If you are still befuddled, send me your loan amortization schedule
template. Send it to joeu2004 "at" hotmail.com.
