# PMT() Formula

1. ## PMT() Formula

Hello all, I need a wee bit of help with Excel's PMT formula, because I was given a worksheet with two different formulas and I seem to get two different results.

I have the following values:
Loan: 1861.52
APR: 24.99%
Loan Time (in months): 24

So to calculate the interest on the number of "Odd" days (not a full month), I use:
=ROUND(1861.52*(1+24.99/36500)^17,2)
My result is 21.79, which means I get to charge 21.79 in interest for 17 days. With this, the monthly (30 days) interest comes out to be \$38.62.

So, 1861.52+21.79 = 1883.31.

So then, I assume they used this formula to calculate the monthly payment with 24.99% APR over 24.99 payments.

=PMT(24.99/1200,24,1883.31,0,0)

The resulting interest over these 24 months comes out to be \$550.62, which on a monthly basis is about \$21.78 dollars.

Does the PMT() formula use a different method to calculate interest? When I do it manually, my result says that the monthly interest needs to be \$38.62...

I could attach the workbook, if need be, but I hope that you can understand it from this post.  Register To Reply

2. I think you need attach the workbook
And there are some questions:
Does this loan interest calculated on a Day to Day base, or monthly?
Is it paid monthly?
Why did you use 1883.31 as the PV, not 1861.52? ``Please Login or Register  to view this content.``  Register To Reply

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