Home |
Search |
Today's Posts |
#1
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
I have figured the nper for a loan on a number of amortization schedules on
the net. However, when I use the npr function in Excel, I get a different number of periods. Why would this be? For example, in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. However, on the internet programs, i get 34 months. Does Excel figure this differently? |
#2
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
I get 34 in excel, did you convert your rate correctly?
Rate cell=0.029/12 PMT cell=-505 PV cell=16472 The formula would look like this =NPER(0.002417,-505,16472) -- -John Please rate when your question is answered to help us and others know what is helpful. "Howdego" wrote: I have figured the nper for a loan on a number of amortization schedules on the net. However, when I use the npr function in Excel, I get a different number of periods. Why would this be? For example, in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. However, on the internet programs, i get 34 months. Does Excel figure this differently? |
#3
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
Ah! I see. I didn't put the minus sign on the payment line. I get the 34
months as you do when it is in, but 31 months when it is out. Do you know why that is so? Is that considered an illogical input? "John Bundy" wrote: I get 34 in excel, did you convert your rate correctly? Rate cell=0.029/12 PMT cell=-505 PV cell=16472 The formula would look like this =NPER(0.002417,-505,16472) -- -John Please rate when your question is answered to help us and others know what is helpful. "Howdego" wrote: I have figured the nper for a loan on a number of amortization schedules on the net. However, when I use the npr function in Excel, I get a different number of periods. Why would this be? For example, in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. However, on the internet programs, i get 34 months. Does Excel figure this differently? |
#4
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
On May 22, 11:57*am, Howdego
wrote: in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. The correct syntax is 2.9%/12. But that cannot be your problem because 2.9/12% results in a huge monthly rate, and NPER() reports a computation error. My guess is: you entered the payment as 550 instead of 505. In that case, NPER() returns 31.1 -- close to 31.4 (yet-another typo?). (If you also typed 2.3%/12 or 2.4%/12 instead of 2.9%/12, NPER() returns 31.4 rounded to one decimal place.) Suffice it to say: whenever you have a question about function usage, it is much easier for people to help you if you show exactly how you use the function. By "exactly", I mean cut-and-paste. Does Excel figure this differently? Not really. But note that another program might (correctly) round certain amounts, and that could account for a small difference. That is probably not that case here. Caveat: Some variation might also arise if you use different assumption in your Excel usage than another program does. For example, for Canadian loans, the interest is "compounded semiannually". You can get the correct results using Excel; but it is not as simply as 2.9%/12. Again, providing more information might result in more helpful feedback. For example, what is the URL of the "internet program" -- if by that you mean online calculator? |
#5
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
It depends on what you are calculating whether or not it matters, but for
safety alway use negative payments. You have (generally) a starting amount that you are trying to reduce, and you do that with "payments" which is actually just decreasing the 16472 by 505. -- -John Please rate when your question is answered to help us and others know what is helpful. "John Bundy" wrote: I get 34 in excel, did you convert your rate correctly? Rate cell=0.029/12 PMT cell=-505 PV cell=16472 The formula would look like this =NPER(0.002417,-505,16472) -- -John Please rate when your question is answered to help us and others know what is helpful. "Howdego" wrote: I have figured the nper for a loan on a number of amortization schedules on the net. However, when I use the npr function in Excel, I get a different number of periods. Why would this be? For example, in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. However, on the internet programs, i get 34 months. Does Excel figure this differently? |
#6
Posted to microsoft.public.excel.misc
|
|||
|
|||
Internet amortization answers differ from function
Howdego,
When you used Nper(2.9%/12,505,16472) the result you got was -31 months (that's *minus* 31 months). So that's your clue that you entered something wrong. Excel uses the sign to show the direction of cash flow. By convention, negative numbers are cash flowing out of your pocket, positive numbers are cash into your pocket. If you borrowed $16,472, this is a positive number, because you received the cash. Every month, you fork out $505, so this number is negative. In practice, as long as you have opposite signs for opposite cash flows, you will get the correct results. That is Nper(2.9%/12,-505,16472) will yield the same results as Nper(2.9%/12,505,-16472) Regards, Fred. "Howdego" wrote in message ... Ah! I see. I didn't put the minus sign on the payment line. I get the 34 months as you do when it is in, but 31 months when it is out. Do you know why that is so? Is that considered an illogical input? "John Bundy" wrote: I get 34 in excel, did you convert your rate correctly? Rate cell=0.029/12 PMT cell=-505 PV cell=16472 The formula would look like this =NPER(0.002417,-505,16472) -- -John Please rate when your question is answered to help us and others know what is helpful. "Howdego" wrote: I have figured the nper for a loan on a number of amortization schedules on the net. However, when I use the npr function in Excel, I get a different number of periods. Why would this be? For example, in excel for a 2.9/12 % loan, 16,472 pv , 0 fv and a $505 per month payment, I get 31.4 months of payments. However, on the internet programs, i get 34 months. Does Excel figure this differently? |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Need set up template/function in Excel to gather survey answers | Excel Worksheet Functions | |||
IF function for multiple answers? | Excel Worksheet Functions | |||
Help with a lookup function that will give me multiple answers | Excel Discussion (Misc queries) | |||
How do I only get valid "answers" in a VLOOKUP function (no #N/A's | Excel Worksheet Functions | |||
Unknown IF function parameter on amortization schedule | Excel Worksheet Functions |