[Resolved] Excel Amortization Formula

[RobDog888]

I know there are some financial formulas for loans and such, but is there or how to amortize a loan to calculate the
interest over the life of the loan?

[RobDog888]

*RUFF*

[visualAd]

Yes, it is possible, there is a function called RATE() which calculates the rate of interest:

A1 = [Term in years]
A2 = [Monthly Payment amount]
A3 = [Loan amount]

=RATE(A1*12, -(A2), A3) * 12

[RobDog888]

But I need to be able to calculate the amount of interest per year that what amortizing is.
Or if I can determine the amount of interest paid for one loan versus the amount of interest for the same load but different terms or rates.

[visualAd]

That formula calculates the interest paid per payment. So if your payments are monthly payments then multiply the result by 12 and you should get the yearly interest.

[szlamany]

It's uglier then that, since the principal reduces each year, the amount of interest in a given year varies.

I've seen mortgage calculation app's on the internet - since each lending house can use a different rule - it's hard to hammer down exactly what the interest in a given year will be...

I GOOGLE'd for "RULE OF SEVENS INTEREST MORTGAGE" - got lots of links...

Maybe this one?

http://www.metrowest-ma.com/mortgage.html

[dglienna]

Something like this?

[RobDog888]

Yes and no szlamany & dglienna. What I was looking for was a breakdown per month of princial and interest. I have used the loan
calculators on the banks websites but it will give me the totals only not per month. Dglienna, Yes, thats how to calculate the imterest
but like alreaady mentioned, I need it per month.

I am trying to determine the cost analysis for my current mortgage vs. refianancing vs. second mortgage, etc.

Thanks.

[nothingofvalue]

Found this if it helps....

[RobDog888]

YES that is exactly what I needed. Amortization of the loan (interest & principal) over the loan term broken down by month!

Thank You nothingofvalue (SomethingOfValue ) and all who replied