Hi Tracy,

In part, the answer depends on how fequently interest is charged. Although it might be calculated daily, it might only be charged
monthly. Plus, some financial institutions calculate the daily & monthly interest on the basis of a year having 12 30-day months, so
interest for a 365 or 366 day year is calculated as if there were only 360 days (30 per month, even for February).

--
Cheers
macropod
[MVP - Microsoft Word]


"Tracy" wrote in message ...
Hi, What is the correct excel formula to calculate the monthly interest on an interest only mortgage of £100,000 at a rate of
3.75% per year where the interest is calculated daily?
At present I use

=((C22*C19)/12)

where C22 is £100,000 and C19 is 3.75% but the result is not the same as what I am being charged each month.
Thanks, Tracy