How can I can calculate loan repayment with some skips payments

Dear All,

I know that PMT formula can calculate loan repayment. but I believe it will do so with equal payments basis. What if I want to calculate loan repayments which to be paid back by 32 monthly equal installments over 36 months term.

I am assuming that I will skip paying months: 5, 13, 27, 32

Is there a way to solve such computation issue please?

What are the reasons behind these months that are being skipped? Must the payments in months 1-4, 6-12, 14-26, 28-31 and 33-36 all be equal to one another? Will the months 5-13-27-32 always be months 5-13-27-32? Can they change?

Originally Posted by hbsqn

I know that PMT formula can calculate loan repayment. but I believe it will do so with equal payments basis. What if I want to calculate loan repayments which to be paid back by 32 monthly equal installments over 36 months term. I am assuming that I will skip paying months: 5, 13, 27, 32[.] Is there a way to solve such computation issue please?

See my responses #3 and #4 to a similar question crossposted to
http://www.mrexcel.com/forum/excel-questions/867005-how-can-i-can-calculate-loan-repayment-some-skips-payments.html (click here).

Originally Posted by quekbc

What are the reasons behind these months that are being skipped? Must the payments in months 1-4, 6-12, 14-26, 28-31 and 33-36 all be equal to one another? Will the months 5-13-27-32 always be months 5-13-27-32? Can they change?

Dear Quekbc,

Appreciate your response. In fact, I am trying to build a calculator for auto loans which will enable me to calculate irregular payments and/ or skip payments. I couldn't find a solution for skip payment which was the reason for me to write this post.

The reason why I'm asking is because it will drive what the outcome of the payment will be. For example, your PMT payment can be calculated on a 36 months term but the PMT will increase by a small amount to "catch-up" on the missed payment (i.e. $100, $100, missed payment or $0, $110, $110,...) In this case, you can use the PMT function, but slightly differently.

Alternatively, if these "missed" periods are pre-planned, with a specified months of missed payments, you can mathematically calculate it out (i.e. formulated) or more simplistically, follow joeu2004's comment on #3.

Originally Posted by quekbc

The reason why I'm asking is because it will drive what the outcome of the payment will be. For example, your PMT payment can be calculated on a 36 months term but the PMT will increase by a small amount to "catch-up" on the missed payment (i.e. $100, $100, missed payment or $0, $110, $110,...) In this case, you can use the PMT function, but slightly differently.

Alternatively, if these "missed" periods are pre-planned, with a specified months of missed payments, you can mathematically calculate it out (i.e. formulated) or more simplistically, follow joeu2004's comment on #3.

Actually it is as you just mentioned, "missed" periods will be pre-planned with customer but all installments must be equal which is my main problem. Any ideas please?

Still waiting for solution please.

I am no financial expert but if the amount to be repaid over 32 months is the same as that which would be paid over 36 months, then calculate the total amount (principal + interest) to be repaid over 36 months and divide that by 32? You can then decide which months are "payment free"

Or I am just showing my ignorance.