# Calculate loan with Grace period

1. ## Calculate loan with Grace period

Dear All

i want to ask you if there are any formula to calcute loan with grace period (30,60,90 etc)

by example
Finance: 100,000
Tenure months: 48
Rate: 7.50%

Instalement Amount =-PMT(7.50%/12,48,100000) =2,417.89
but i want to see who to calculete with grace period>

today is 04/9/2017 if 0 grace periode that is mean loan start from 04/10/2017 with Instalement Amount (2,417.89)
i found in my bank system calculator that if we start after 30 or 60 or 90 the isnaltemnt will be
04/10/2017=2433
03/11/2017=2448
03/12/2017=2463  Register To Reply

2. ## Re: Calculate loan with Grace period

They seem to be increasing the principal by the interest earned during the "grace period".

(Not my definition of a "grace period". But apparently, it follows loan conventions, according to online sources .)

Based on that assumption, the principal would be the following for the corresponding grace periods and approximate payments: ``Please Login or Register  to view this content.``
I show the 0 grace period (row 1) to demonstrate the effect of approximating the payment.

Note that about 0.625% is added to the principal for each grace-period month. And note that 7.5%/12 is 0.625%.

Because only approximate payment are presented, we don't know whether simple or compounded interest is added to the principal. According to online sources , I would expect compounded interest. But look at the loan contract for details.

 http://www.investopedia.com/terms/g/grace_period.asp  Register To Reply

3. ## Re: Calculate loan with Grace period

Note that I added column E by editing after the original posting.  Register To Reply

4. ## Re: Calculate loan with Grace period

Try this: ``Please Login or Register  to view this content.``
The 3 in the formula is the number of months for grace period.

Godspeed!  Register To Reply

5. ## Re: Calculate loan with Grace period Originally Posted by joeu2004 They seem to be increasing the principal by the interest earned during the "grace period".

(Not my definition of a "grace period". But apparently, it follows loan conventions, according to online sources .)

Based on that assumption, the principal would be the following for the corresponding grace periods and approximate payments: ``Please Login or Register  to view this content.``
I show the 0 grace period (row 1) to demonstrate the effect of approximating the payment.

Note that about 0.625% is added to the principal for each grace-period month. And note that 7.5%/12 is 0.625%.

Because only approximate payment are presented, we don't know whether simple or compounded interest is added to the principal. According to online sources , I would expect compounded interest. But look at the loan contract for details.

 http://www.investopedia.com/terms/g/grace_period.asp

Great thanks Mr joeu2004
it seems to be done   Register To Reply

6. ## Re: Calculate loan with Grace period Originally Posted by Estevaoba Try this: ``Please Login or Register  to view this content.``
The 3 in the formula is the number of months for grace period.

Godspeed!
Great tahnks also i understand what you mean  Register To Reply

There are currently 1 users browsing this thread. (0 members and 1 guests) 