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#1
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Wrong answer after using the payment formula in excel
I am trying to get a monthly payment figure by using the payment formula in
excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#2
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What are the answers you get in each environment.
FWIW, I calculate my mortgage payments using PMT and they are correct. -- Regards - Andy Wiggins FCCA www.BygSoftware.com Excel, Access and VBA Consultancy "punkyh" wrote in message ... I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#3
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Without knowing what you expect to see, it's hard to help.
What your formula implies is: Annual interest rate: 1.8% (i.e., 0.15%*12) Term: 30 years (360 months) Present value: $375 Future value: $0 for a payment of $1.35 per month (the result will be negative since your PV is positive). What were you trying to calculate? In article , punkyh wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) |
#4
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The way you have it set up is
Amount of loan: $375,000 Years: 30 Interest rate: 1.8% Is that what you wanted? 1.8% seems low? Also for PMT() the amount 375,000 should be -375000 or it will return a negative payment amount if that would cause a problem. "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#5
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Although you are probably correct that a 30 year loan is $375,000 the OP in
fact is using $375 :) at least as written in his example -- Regards, Peo Sjoblom "ww" wrote in message ... The way you have it set up is Amount of loan: $375,000 Years: 30 Interest rate: 1.8% Is that what you wanted? 1.8% seems low? Also for PMT() the amount 375,000 should be -375000 or it will return a negative payment amount if that would cause a problem. "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#6
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Yeah I know. I noticed it after I posted. Just saw 375,000 and
automatically thought $375,000 instead of $375 with a FV of 000 :) "Peo Sjoblom" wrote: Although you are probably correct that a 30 year loan is $375,000 the OP in fact is using $375 :) at least as written in his example -- Regards, Peo Sjoblom "ww" wrote in message ... The way you have it set up is Amount of loan: $375,000 Years: 30 Interest rate: 1.8% Is that what you wanted? 1.8% seems low? Also for PMT() the amount 375,000 should be -375000 or it will return a negative payment amount if that would cause a problem. "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#7
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Thank all of you for the responses...
Peo...you must love this stuff huh? You answered my other question! Okay: When you calculate a payment using a financial calculator with these values: 1.5% -256,000 360 months you should get $883.51. when I do it in Excel, I get $919.45 Help? "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#8
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I get 883.51, using
=PMT(0.015/12,360,-256000) HTH, Bernie MS Excel MVP "punkyh" wrote in message ... Thank all of you for the responses... Peo...you must love this stuff huh? You answered my other question! Okay: When you calculate a payment using a financial calculator with these values: 1.5% -256,000 360 months you should get $883.51. when I do it in Excel, I get $919.45 Help? "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
#9
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That must be a Tyco loan to Kozlowski to have a rate that low <g
Regards, Peo Sjoblom "Bernie Deitrick" wrote: I get 883.51, using =PMT(0.015/12,360,-256000) HTH, Bernie MS Excel MVP "punkyh" wrote in message ... Thank all of you for the responses... Peo...you must love this stuff huh? You answered my other question! Okay: When you calculate a payment using a financial calculator with these values: 1.5% -256,000 360 months you should get $883.51. when I do it in Excel, I get $919.45 Help? "punkyh" wrote: I am trying to get a monthly payment figure by using the payment formula in excel. It always calculates the payment incorrectly. I try it on my financial calculator, as well as a financial program I have in the computer and these two come up with the same figure. Then I try it in excel, the answer is different. the formula I am using is: =PMT(.0015,360,375,000) Any help?? |
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