I'm trying to get the working for the following loan calculation:

[humphreybumphrey]

Details:
Loan amount = 1,400,000.00
Repayment period in years = 15
Interest rate = 2.75%
Number of payments per year = 12

Results:
Amount per repayment = 9,500.70
Total paid over life of loan = 1,710126.50
Total interest paid during loan = 310,126.53

[factor-fiction]

It seems correct to me. Each month there is an interest charge of close to 0.23% (one twelfth of 2.75%). So in month one the interest charge is £3208. You pay £9500 a month in payments, so by the end of the month the amount to be repaid is 1,400,000 + 3208 - 9500= £1393708.
So next month the interest charge is based on a smaller outstanding balance, and you continue to pay £9500 so by month 3 your balance has fallen again. As time goes by your outstanding balance falls by more each month so the interest due falls and you continue to pay £9500. By the end of 15 years your balance is nil.

[humphreybumphrey]

Thank you!

I had this question posted on yahoo answers for a full day... nada.

It just goes to show, ABers are the bestest!

[factor-fiction]

A spreadsheet can be used. There are plenty of things on the web that use Excel, eg http://www.bettersolu...EAV113/QE12381021.htm

[humphreybumphrey]

Thanks again factor.

Had a look at that site and it looks great. However, the link you posted isn't working properly. Where should I go after selecting the Excel tab?

[factor-fiction]

http://www.bettersolu...DH111/QI911412112.htm
Click on Financial then on Loan repayments.
This is justa site I picked at random- - a Google search on something like 'Loan repayment calculation Excel' will yield some useful sites

[humphreybumphrey]

Once again, thank you factor30!