Question

Request for amortisation formula. Irregular payment dates

I would like to be able to calculate the remaining amount of loan due after each payment on a loan with irregular payment dates and irregular amounts. Is this possible?
Many thanks.

Discussion is locked
Follow
Reply to: Request for amortisation formula. Irregular payment dates
PLEASE NOTE: Do not post advertisements, offensive materials, profanity, or personal attacks. Please remember to be considerate of other members. If you are new to the CNET Forums, please read our CNET Forums FAQ. All submitted content is subject to our Terms of Use.
Reporting: Request for amortisation formula. Irregular payment dates
This post has been flagged and will be reviewed by our staff. Thank you for helping us maintain CNET's great community.
Sorry, there was a problem flagging this post. Please try again now or at a later time.
If you believe this post is offensive or violates the CNET Forums' Usage policies, you can report it below (this will not automatically remove the post). Once reported, our moderators will be notified and the post will be reviewed.
Comments
- Collapse -
Answer
No. Here's why.

No institution here gives you credit if your 1st of the month is paid in advance by say 20 days. You can argue this all you want but the payment won't reduce your interest rate by doing that. However making payments in excess of the payment due does have an effect depending on the terms of the loan. This varies by country so again you can't use any off the shelf solution.

The company that gave the loan has to supply you with the new numbers.

Now if this was for no more than a theoretical use you can get such for Excel and other sheets. Such as: https://www.google.com/#q=excel+loan+chart+template

There I see one with "extra payments." But again these may not match your institutions results.

- Collapse -
Answer
Re: loans

That's surely possible. But it's not one simple formula. For each payment calculate the part for the interest (previous balance times days times percentage). The remaining part lowers the balance.
A spreadsheet is a perfect tool for this.

Kees

CNET Forums