Excel PMT Calculation

This WebDNA talk-list message is from

2001


It keeps the original formatting.
numero = 37963
interpreted = N
texte = I'm trying to calculate the payment for a loan that yields the same result as Excel using their PMT formula. The variables are the interest rate, number of periods for the term of the loan in months, and the principal amount of the loan.The problem is that my results are not the same as those produced by Excel even though I'm using the same formula that Excel uses.The Excel formula is: =(PMT(rate,number of payments,loan amount)) The Excel docs say that the formula is: PMT=(rate*(FV+PV*(1+rate)^nper))/((1+rate*type)*(1-(1+rate)^nper)) The type is 0 if the payment is at the end of a period or 1 at the beginning. It is 0 in this case. I'm using the following where: Interest rate is 8% ([rate]=.08) Term is 36 months ([nper]=36) Loan Amount is 20,000 ([PV]=20000)I calulate the monthly payment ([mpayment]) using:[math][nper]/1[/math][text]numperM=[math]([nper]/1)[/math][/text][text]mrate=[math][rate]/[numperM][/math][/text] [text]mpayment=[math]([mrate]*([PV]*(1+[mrate])^[numperM]))/((1+([mrate]*0))*(1-(1+[mrate])^[numperM]))[/math][/text]This produces a monthly payment of $578.69, where Excel produces a monthly payment of $626.73.I'm unable to figure out why there is a difference. Is is a rounding of variables problem or some other weirdness by Excel?Any help would be appreciated.Richard Kirsner------------------------------------------------------------- This message is sent to you because you are subscribed to the mailing list . To unsubscribe, E-mail to: To switch to the DIGEST mode, E-mail to Web Archive of this list is at: http://search.smithmicro.com/ Associated Messages, from the most recent to the oldest:

    
  1. Re: Excel PMT Calculation (Richard Kirsner 2001)
  2. Re: Excel PMT Calculation (Scott Anderson 2001)
  3. Re: Excel PMT Calculation (Sal D'anna 2001)
  4. Excel PMT Calculation (Richard Kirsner 2001)
I'm trying to calculate the payment for a loan that yields the same result as Excel using their PMT formula. The variables are the interest rate, number of periods for the term of the loan in months, and the principal amount of the loan.The problem is that my results are not the same as those produced by Excel even though I'm using the same formula that Excel uses.The Excel formula is: =(PMT(rate,number of payments,loan amount)) The Excel docs say that the formula is: PMT=(rate*(FV+PV*(1+rate)^nper))/((1+rate*type)*(1-(1+rate)^nper)) The type is 0 if the payment is at the end of a period or 1 at the beginning. It is 0 in this case. I'm using the following where: Interest rate is 8% ([rate]=.08) Term is 36 months ([nper]=36) Loan Amount is 20,000 ([PV]=20000)I calulate the monthly payment ([mpayment]) using:[math][nper]/1[/math][text]numperM=[math]([nper]/1)[/math][/text][text]mrate=[math][rate]/[numperM][/math][/text] [text]mpayment=[math]([mrate]*([PV]*(1+[mrate])^[numperM]))/((1+([mrate]*0))*(1-(1+[mrate])^[numperM]))[/math][/text]This produces a monthly payment of $578.69, where Excel produces a monthly payment of $626.73.I'm unable to figure out why there is a difference. Is is a rounding of variables problem or some other weirdness by Excel?Any help would be appreciated.Richard Kirsner------------------------------------------------------------- This message is sent to you because you are subscribed to the mailing list . To unsubscribe, E-mail to: To switch to the DIGEST mode, E-mail to Web Archive of this list is at: http://search.smithmicro.com/ Richard Kirsner

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