I’m building a simple loan calculation for a customer. Nothing exciting and there’s lots of online tools that do it, yet I’m stumped.
One is based on calculating total loan repayment and monthly loan repayment. The other is based on selecting the monthly budget and working out how much the client can borrow over the term.
My calculations are out by about £100-200, but why?
I’m using the ‘PMT’ formula in excel, but the answer varied from the online tool and I’m not sure why..
Essentially I’m looking for the formulas that drive the 2 parts (‘Loan Amount’ & ‘Monthly Budget’) of this calculator- MoneySupermarket
For the sake of an example;
Loan amount-
> Loan: £100,000
> Term: 36 months
> Interest: 2.7%
= Monthly payments of £??
= Total repayment of £??
Monthly budget:
> Monthly payment: £3,000
> Term: 36 months
> Interest: 2.7%
= Loan available: £??
= Total repayable: £??
Any chance someone could help me?