How to calculate total interest on 12 month loan with early payments
 

You want XIRR (it's in the Analysis Toolpak -- if you haven't loaded it,
goto ToolsAddins)

Assume A1:A7 has your seven cash flows (-25 plus your 6 repayments)
Assume B1:B7 has your seven dates (eg, 1/15/05, 7/15/05, 8/15/05, etc)

Result = XIRR(a1:a7,b1:b7)

--
Regards,
Fred
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"KG" wrote in message
news:E40Dd.721967$%k.504818@pd7tw2no...
I would like to calculate the total interest earned on a 12 month loan that
gets paid back in 6 equal, monthly payments in months 7-12. Each of the 6
equal, monthly payments will include 1/6 of the return on investment. Here
is a scenario:

Capital Invetsted = $25,000
Return on Investment (20%) = $5,000
Total Repayment = $30,000
6 Equal Payments = $5,000 ($30,000 / 6)

Payment schedule:
Month
1 $0
2 $0
3 $0
4 $0
5 $0
6 $0
7 $5,000
8 $5,000
9 $5,000
10 $5,000
11 $5,000
12 $5,000