Construction Loan Interest Formula
Hello! I'm in the process of building a new home. I have built an Excel sheet that adds up each draw on my loan. I would like to put in a formula that calculates a daily interest based on amounts as they are drawn from the bank. I'm not paying any principal on the loan during the 9 month construction phase. The monthly rate is 6.9% Can someone help me with a formula that calculates interest as draws are taken on the loan? Thanks, EGavin -- EGavin ------------------------------------------------------------------------ EGavin's Profile: http://www.excelforum.com/member.php...o&userid=30127 View this thread: http://www.excelforum.com/showthread...hreadid=498136 |
Construction Loan Interest Formula
Specifics will depend on how your spreadsheet is set up, but, in general you
want to calculate the average daily loan balance, then multiply by 6.9%/12 to get the interest charge for that month. You could have a spreadsheet which calculates the loan balance daily, in which case you could multiply each daily balance by 6.9%/365 to get the interest charged that day, then add them up for the month. Or, if your spreadsheet changes only when you draw down funds, calculate 3.9%/365*NumberDays since last drawdown. If you are paying the interest every month, fine. If not, add the interest at the end of the month to the loan balance. -- Regards, Fred "EGavin" wrote in message ... Hello! I'm in the process of building a new home. I have built an Excel sheet that adds up each draw on my loan. I would like to put in a formula that calculates a daily interest based on amounts as they are drawn from the bank. I'm not paying any principal on the loan during the 9 month construction phase. The monthly rate is 6.9% Can someone help me with a formula that calculates interest as draws are taken on the loan? Thanks, EGavin -- EGavin ------------------------------------------------------------------------ EGavin's Profile: http://www.excelforum.com/member.php...o&userid=30127 View this thread: http://www.excelforum.com/showthread...hreadid=498136 |
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