I understand what you are saying but loan companies agree with my monthly
instalment, as they are not worked on a reducing balance. Is there another
function that can be used to give the same figures as my traditional method?

Thanks

"John Davies" wrote:

If I use the PMT function the montly instalment does not agree using
traditional maths. e.g. £10000.00 loan over 48 months @ 8% per annum. i.e
£10000.00 x 8% x 4 = £4800.00 interest
Total Loan amount = £10000.00 + £4800.00 interest = £14800.0
Monthly instalment = £14800.00/48 = £275.00

Using the PMT function i.e.
=PMT(8%/12,48,£10000.00) gives a monthly figure of £244.13
Please advise where I am going wrong
Thanks