Does anybody know the formula to use on a calc or excel spreadsheet to work out interest of payments?

 

Got a loan and they have given me my balance/ remaining term in months, interest rate and my monthly payment

 

cant work out how the hell they get to that figure?????

 

Thanks

 

I tried taking my balance - dividing by months then * 6.54%

but its not what they get - in fact its nowhere near :)

not sure of forumla itself, but trying multiplying by 0.0654 as sometimes excel tries to be too clever and %'s when its not supposed to, or twice, or whatever.

 

is the 6.54% fixed on your initial loan or is it on your remaining balance each month?

not sure of forumla itself, but trying multiplying by 0.0654 as sometimes excel tries to be too clever and %'s when its not supposed to, or twice, or whatever.

 

is the 6.54% fixed on your initial loan or is it on your remaining balance each month?

 

Say you borrowed £1000 and have 3 years to pay it back at a 6.54% yearly rate.

   	 Paid Off      Interest     Owed 
		         £1,000.00 
1 	 £30.65 	 £5.45 	 £974.80 
2 	 £30.65 	 £5.31 	 £949.46 
3 	 £30.65 	 £5.17 	 £923.99 
4 	 £30.65 	 £5.04 	 £898.37 
5 	 £30.65 	 £4.90 	 £872.62 
6 	 £30.65 	 £4.76 	 £846.72 
7 	 £30.65 	 £4.61 	 £820.69 
8 	 £30.65 	 £4.47 	 £794.51 
9 	 £30.65 	 £4.33 	 £768.19 
10 	 £30.65 	 £4.19 	 £741.73 
11 	 £30.65 	 £4.04 	 £715.12 
12 	 £30.65 	 £3.90 	 £688.37 
1 	 £30.65 	 £3.75 	 £661.47 
2 	 £30.65 	 £3.61 	 £634.43 
3 	 £30.65 	 £3.46 	 £607.23 
4 	 £30.65 	 £3.31 	 £579.89 
5 	 £30.65 	 £3.16 	 £552.40 
6 	 £30.65 	 £3.01 	 £524.76 
7 	 £30.65 	 £2.86 	 £496.97 
8 	 £30.65 	 £2.71 	 £469.03 
9 	 £30.65 	 £2.56 	 £440.94 
10 	 £30.65 	 £2.40 	 £412.69 
11 	 £30.65 	 £2.25 	 £384.29 
12 	 £30.65 	 £2.09 	 £355.73 
1 	 £30.65 	 £1.94 	 £327.02 
2 	 £30.65 	 £1.78 	 £298.16 
3 	 £30.65 	 £1.62 	 £269.13 
4 	 £30.65 	 £1.47 	 £239.95 
5 	 £30.65 	 £1.31 	 £210.61 
6 	 £30.65 	 £1.15 	 £181.10 
7 	 £30.65 	 £0.99 	 £151.44 
8 	 £30.65 	 £0.83 	 £121.62 
9 	 £30.65 	 £0.66 	 £91.63 
10 	 £30.65 	 £0.50 	 £61.48 
11 	 £30.65 	 £0.34 	 £31.16 
12 	 £30.65 	 £0.17 	 £0.68 

Total Paid back: £1,103.40

Of Which is interest: £104.08

 

For some reason my sums are 68p out! but you get the idea.

Dave, not sure :)

Ollie - how did you work that out :)

I took out a 10K loan almost 2 years ago and I asked for a settlement last month and I still owe over 7K. ?????Its a front loaded loan apparently so you pay the interest before you pay the loan. Its a bit of a rip off really.

I took out a 10K loan almost 2 years ago and I asked for a settlement last month and I still owe over 7K. ?????Its a front loaded loan apparently so you pay the interest before you pay the loan. Its a bit of a rip off really.

this may be front loaded :(

just after how to work it out, I tried thte 0.065 multiplication thing but that didnt work.

Ollies post looks right - just not included the formula

 

I know it depends whether int is charged monthly or yearly etc but I thought you could just divide the loan amount by monthly payments then times %.

Dave, not sure :)

Ollie - how did you work that out :)

 

Every loan is different and worked out differently. I just assumed the most basic.

 

Each month, take what you owe, add the month's interest (0.0654/12= 0.00545). Then take off your monthly payment. This new figure is what you owe next month. Rinse and repeat till it reaches £0.00.

 

This may of course be completely wrong for the type of loan you have, contact your bank for a breakdown.

cheers fella :)