# [access-uk] Re: Calculating APR on a loan

• From: "david pritchard" <wd.pritchard@xxxxxxxxxxxxxx>
• To: <access-uk@xxxxxxxxxxxxx>
• Date: Fri, 27 Apr 2012 10:11:26 +0100
```Hi andy,

I've tried sending an Excel fragment with an example of the pmt function
forgetting that the list does not allow attachments.! I'm pasting a section of
the Excel reference manual giving the syntax and an example below. Hope this is
of some use.

cheers

Dave
Periodic Payment

Syntax: =PMT(rate,nper,pv,fv,type) The PMT function calculates
the periodic payment for different types and future values (fv)
of investments given the investment's rate, term (nper), and
present value (pv). If no values are entered for fv and type,
they are considered to be zero.

You Supply: rate as the interest rate per period; nper as the
total number of periods; pv as the present value; (optional) fv
as the future value; (optional) type as 0 if payment is at the
end of the period, or 1 if payment is at the beginning of the
period.

Result is: the periodic payment for a loan, expressed in a
dollar amount.

Example: The following formula calculates the periodic payment
for a loan totaling \$120,000 over 30 years at 10 percent
interest:

=PMT(.1/12,360,120000)

The result is (\$1,053.09). The result is negative because it
represents the amount you pay out.

From: ANDY COLLINS
Sent: Wednesday, April 25, 2012 10:40 PM
To: access-uk@xxxxxxxxxxxxx
Subject: [access-uk] Re: Calculating APR on a loan

Yes please Dave, it'd be great to be able to just put the figure in and get the
results from a formula -

Andy
----- Original Message -----
From: david pritchard
To: access-uk@xxxxxxxxxxxxx
Sent: Wednesday, April 25, 2012 9:29 PM
Subject: [access-uk] Re: Calculating APR on a loan

Hi Andy,

You can use the PMT function in Excel. I can dig out an example if required.

Regards

Dave

From: ANDY COLLINS
Sent: Wednesday, April 25, 2012 9:09 PM
To: access-uk@xxxxxxxxxxxxx
Subject: [access-uk] Calculating APR on a loan

Hi all -

Hope I'm ok asking this here. I've been looking on some websites, and
unfortunately their calculater tools for working out monthly repayments on a
loan with an APR, require the sliding of a graphical bar across a grid. So, can
anybody tell me how to work out monthly repayments using APR interest. Let's
work with an easy example, if one borrows 10 thousand pounds, and the APR is 6
percent, how does one work out the monthly repayments over say 1 and 2 and 3
years? I can work out 6 percent of 10 grand, but it doesn't work that way, so
anybody help with this one?

Thanks -

Andy```