# How to determine amount owed on a loan in future

1. ## How to determine amount owed on a loan in future

Hi

I have a 20 year loan on my house. I do monthly payment periods so 240 payment periods. I wish to determine how much I will still owe say x payment periods from now. Interest rate is constant.

I'm not sure which Excel financial formula I need to use.

2. ## Re: How to determine amount owed on a loan in future

Hi,

With
A1 - Loan Amount
A2 - Monthly interest rate
A3 - Monthly payment
A4 - Number of periods

Formula:
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or using Excel's FV function
Formula:
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3. ## Re: How to determine amount owed on a loan in future

As Richard noted, you must use the monthly interest rate. But usually, you are given only an annual interest.

So you might wonder: how do you convert an annual rate to a monthly rate?

In my experience working with other Australian loans, it is simply annualRate/12.

If you have any doubt, you might confirm that with the lender.

Another common method is (1+annualRate)^(1/12) - 1.

And Canadians do things differently, as Canadians must (smile): (1+annulRate/2)^(1/6) - 1.

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