Excel interest rate/calculator formulae

Guys,

Help please. I am trying to make up a simple mortgage calculator.

I have a very boring simple formulae - something like:

Value of property/300* interest rate.

ie Value of property / a repayment term of 25 years times by the interest rate.

The value I get back is incorrect.

Help!

To determine the interest rate:

=RATE(nper,pmt,pv,fv,type,guess)

To determine the home value:

=PV(rate,nper,pmt,fv,type)

To determine the monthly payment:

=PMT(rate,nper,pv,fv,type)

Tip: When using nper and rate, use months for the nper, and rate/12 for monthly interest rate.

Thank you so much for the quick reply. But what does all this mean?!

I know the: interest rate and the value of the loan.

ie if cell A1 had 200,000 in it, and I wanted to repay it over 25 years at an interest rate of 5.5%, what would the formula be?

To determine the payment in your example, use the PMT function:

=PMT( 5.5%/12, 25*12, -A1 )

The help menu helps out a lot describing each of the variables of these formulas.

Excellent. Thanks very much.

Appreciated

No problem.