I am trying to calculate monthly INTEREST ONLY payment on a short term
bridge/swing loan. Assuming an interest rate of 2.75%, paid monthly, Also
assuming it will be required for a 3-6 month period, amount approx $500,000.
Just switched to Excel 2007 but don't seem to be able to calculate using the
formula builder. Not sure if it is compounded daily or monthly.

You might want to check out the IPMT function. From the XL help file:

IPMT(rate,per,nper,pv,fv,type)

Rate is the interest rate per period.

Per is the period for which you want to find the interest and must be in
the range 1 to nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value, or the lump-sum amount that a series of future
payments is worth right now.

Fv is the future value, or a cash balance you want to attain after the
last payment is made. If fv is omitted, it is assumed to be 0 (the future
value of a loan, for example, is 0).

Type is the number 0 or 1 and indicates when payments are due. If type is
omitted, it is assumed to be 0.

Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period

--
Best Regards,

Luke M
*Remember to click "yes" if this post helped you!*


"Excel 2007 dummy" wrote:

I am trying to calculate monthly INTEREST ONLY payment on a short term
bridge/swing loan. Assuming an interest rate of 2.75%, paid monthly, Also
assuming it will be required for a 3-6 month period, amount approx $500,000.
Just switched to Excel 2007 but don't seem to be able to calculate using the
formula builder. Not sure if it is compounded daily or monthly.

=IPMT(2.75%/12, 3, 3*12, 500000)
($1,084.62) , -- end of period

=IPMT(2.75%/12, 3, 3*12, 500000,0,1)
($1,082.14) -- beginning of period


See this for some examples:
http://www.techonthenet.com/excel/formulas/ipmt.php


HTH,
Ryan---
--
Ryan---
If this information was helpful, please indicate this by clicking ''Yes''.


"Luke M" wrote:

You might want to check out the IPMT function. From the XL help file:

IPMT(rate,per,nper,pv,fv,type)

Rate is the interest rate per period.

Per is the period for which you want to find the interest and must be in
the range 1 to nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value, or the lump-sum amount that a series of future
payments is worth right now.

Fv is the future value, or a cash balance you want to attain after the
last payment is made. If fv is omitted, it is assumed to be 0 (the future
value of a loan, for example, is 0).

Type is the number 0 or 1 and indicates when payments are due. If type is
omitted, it is assumed to be 0.

Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period

--
Best Regards,

Luke M
*Remember to click "yes" if this post helped you!*


"Excel 2007 dummy" wrote:

I am trying to calculate monthly INTEREST ONLY payment on a short term
bridge/swing loan. Assuming an interest rate of 2.75%, paid monthly, Also
assuming it will be required for a 3-6 month period, amount approx $500,000.
Just switched to Excel 2007 but don't seem to be able to calculate using the
formula builder. Not sure if it is compounded daily or monthly.

If the interest is "paid monthly", the amount is:
=500000*2.75%/12

Sometimes eschewing financial functions makes things a lot easier.

Regards,
Fred.

"Excel 2007 dummy" <Excel 2007 wrote in
message ...
I am trying to calculate monthly INTEREST ONLY payment on a short term
bridge/swing loan. Assuming an interest rate of 2.75%, paid monthly, Also
assuming it will be required for a 3-6 month period, amount approx
$500,000.
Just switched to Excel 2007 but don't seem to be able to calculate using
the
formula builder. Not sure if it is compounded daily or monthly.

To calculate the monthly interest-only payment on a short-term bridge loan in Excel 2007, you can use the PMT function. Here are the steps:

1. Open a new Excel worksheet and enter the following information in cells A1 to A4:
   - Loan amount: $500,000 (cell A1)
   - Interest rate: 2.75% (cell A2)
   - Loan term: 3 months (cell A3)
   - Payment frequency: Monthly (cell A4)
   
2. In cell A5, enter the following formula:
   
   Code:

   =PMT(A2/12,A3,A1)

   This formula uses the PMT function to calculate the monthly payment for a loan with an annual interest rate of A2, a loan term of A3 months, and a loan amount of A1. The interest rate is divided by 12 to convert it to a monthly rate.
   
3. Press Enter to calculate the monthly interest-only payment. The result should be -$11,458.33 (the negative sign indicates an outgoing payment).
   
   This means that the monthly interest-only payment on a $500,000 bridge loan with a 2.75% interest rate and a 3-month term is $11,458.33.
   
   Note that this calculation assumes that the interest is compounded monthly. If it is compounded daily, you would need to adjust the formula accordingly by dividing the interest rate by 365 (or 360, depending on the loan terms) and multiplying the loan term by the number of days in the loan period.