The EMI includes the principal amount as well as the interest component on loan. = FV: 0.05/12, 120, 536.82, 100 000.00, 0 = -81 342.Equated monthly instalment (EMI) refers to the fixed amount that the borrower of a loan needs to pay to the lender at a specific date every month. Type: when payments occur in the year, usually calculated at the end. A future value of a loan at the end is always 0. (total periods - current period), (12*30-120)įV: is the value of the loan in the future at end after 360 periods (after 30 year * 12 payments per year). Payment number is the number of periods you want to look at (10 year * 12 payments per year = 120, yellow cells). Since they are linked they need to give the same Cash Flows over time (bit more tricky if the period/interest rate is not constant over time)!! In the example below, where I replicated the way the example calculate PV (Column E the example from excel-easy, Loan Amortization Schedule) and in Column F we use Excel's build in function PV. Which can be illustrated in this graph, source link: PV is the discounted value at interest rate of FV.They use PV in the example and you can always double-check Present Value (PV) vs Future Value (FV), why? Understanding why the formula works and why you should use FV as P.J correctly states! I don't like to post answer when there already exist a brilliant answer, but I want to give some views. I'd hate to have to create 25 different amortization schedules - a lot of copy-paste-dragging. With a table, when you want to look at the balance after a certain amount of payments have been made for the home loan, you would just visually scan the table for that period.īut is there any single formula which shows the remaining loan balance by just changing the "time" variable? (# of years/mths in the future).Īn example of the information I'm trying to find is "what would be the remaining balance on a home loan with the following criteria after 10 years":
Finding the future balance for multiple home loans would require setting up a table for ea. Its looks like it is not possible to find the home loan balance w/ out creating one of those long tables ( example). I'm trying to calculate the remaining balance of a home loan at any point in time for multiple home loans.
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