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How to determine amount owed on a loan in future

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    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.

    Thanks in advance.

  2. #2
    Forum Moderator Richard Buttrey's Avatar
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    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: copy to clipboard
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    or using Excel's FV function
    Formula: copy to clipboard
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    Richard Buttrey

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  3. #3
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    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.
    Last edited by joeu2004; 03-09-2018 at 02:27 AM. Reason: removed unintended suggestion

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