Wrong answer after using the payment formula in excel

[Guest]

I am trying to get a monthly payment figure by using the payment formula in
excel. It always calculates the payment incorrectly. I try it on my
financial calculator, as well as a financial program I have in the computer
and these two come up with the same figure. Then I try it in excel, the
answer is different.

the formula I am using is: =PMT(.0015,360,375,000)

Any help??

 

[Andy Wiggins]

What are the answers you get in each environment.

FWIW, I calculate my mortgage payments using PMT and they are correct.

--
Regards
-
Andy Wiggins FCCA
www.BygSoftware.com
Excel, Access and VBA Consultancy

 

[JE McGimpsey]

Without knowing what you expect to see, it's hard to help.

What your formula implies is:

Annual interest rate: 1.8% (i.e., 0.15%*12)
Term: 30 years (360 months)
Present value: $375
Future value: $0

for a payment of $1.35 per month (the result will be negative since your
PV is positive).

What were you trying to calculate?

 

[Guest]

The way you have it set up is
Amount of loan: $375,000
Years: 30
Interest rate: 1.8%

Is that what you wanted? 1.8% seems low? Also for PMT() the amount 375,000
should be -375000 or it will return a negative payment amount if that would
cause a problem.

 

[Peo Sjoblom]

Although you are probably correct that a 30 year loan is $375,000 the OP in
fact is using
$375 at least as written in his example

 

[Guest]

Yeah I know. I noticed it after I posted. Just saw 375,000 and
automatically thought $375,000 instead of $375 with a FV of 000

 

[Guest]

Thank all of you for the responses...

Peo...you must love this stuff huh? You answered my other question!

Okay: When you calculate a payment using a financial calculator with these
values:
1.5%
-256,000
360 months

you should get $883.51. when I do it in Excel, I get $919.45

Help?

 

[Bernie Deitrick]

I get 883.51, using

=PMT(0.015/12,360,-256000)

HTH,
Bernie
MS Excel MVP

 

[Guest]

That must be a Tyco loan to Kozlowski to have a rate that low <g>


Regards,

Peo Sjoblom