# 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

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 [1].)

Based on that assumption, the principal would be the following for the corresponding grace periods and approximate payments:
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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 [1], I would expect compounded interest. But look at the loan contract for details.

[1] http://www.investopedia.com/terms/g/grace_period.asp

3. ## Re: Calculate loan with Grace period

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

4. ## Re: Calculate loan with Grace period

Try this:

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The 3 in the formula is the number of months for grace period.

Godspeed!

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 [1].)

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 [1], I would expect compounded interest. But look at the loan contract for details.

[1] http://www.investopedia.com/terms/g/grace_period.asp

Great thanks Mr joeu2004
it seems to be done

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

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