Financial function - calculating loans with deferred payments
Anyone know of a way to calculate the repayment schedule for a loan with
fixed interest rate and term, and a deferred payment schedule? For example, figuring the payments on a 40-year loan for the amount of $10 million at 6%, if the payments were only made in years 26 through 40. Functions in Excel, from what I see, require payments to begin in year 1. I can use the NPV function to try to get in the ballpark, but that's a slow, interative process. Thanks for the help. |
Answer: Financial function - calculating loans with deferred payments
Yes, there is a way to calculate the repayment schedule for a loan with deferred payments using Excel. You can use the
Formula:
Here are the steps to calculate the repayment schedule for a loan with deferred payments:
These steps should give you the repayment schedule for a loan with deferred payments. Let me know if you have any questions or need further assistance. |
Financial function - calculating loans with deferred payments
Hi Paul
Would it not be the same as calculating the loan over 15 years, but starting with a principal which was 10,000,000*(1.06)^25 i.e. by the time payments begin, the accrued Loan = Interest would be $42,918,707.20 Paying this off over 15 years at 6% interest would give annual payments of $3,389,401.08 -- Regards Roger Govier "Paul 022" <Paul wrote in message ... Anyone know of a way to calculate the repayment schedule for a loan with fixed interest rate and term, and a deferred payment schedule? For example, figuring the payments on a 40-year loan for the amount of $10 million at 6%, if the payments were only made in years 26 through 40. Functions in Excel, from what I see, require payments to begin in year 1. I can use the NPV function to try to get in the ballpark, but that's a slow, interative process. Thanks for the help. |
Financial function - calculating loans with deferred payments
Good point, Roger. That works - thanks for the help!
"Roger Govier" wrote: Hi Paul Would it not be the same as calculating the loan over 15 years, but starting with a principal which was 10,000,000*(1.06)^25 i.e. by the time payments begin, the accrued Loan = Interest would be $42,918,707.20 Paying this off over 15 years at 6% interest would give annual payments of $3,389,401.08 -- Regards Roger Govier "Paul 022" <Paul wrote in message ... Anyone know of a way to calculate the repayment schedule for a loan with fixed interest rate and term, and a deferred payment schedule? For example, figuring the payments on a 40-year loan for the amount of $10 million at 6%, if the payments were only made in years 26 through 40. Functions in Excel, from what I see, require payments to begin in year 1. I can use the NPV function to try to get in the ballpark, but that's a slow, interative process. Thanks for the help. |
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