Calculate Term

[Anita]

In Excel I know how to calculate a monthly repayment using PMT but is there
any way I can calculate how long a loan would take to pay off )this is a
question I've been asked and I'm not sure whether it can be done or not).

I thought maybe goal seek but you can only use that on a cell containing a
formula.

Any ideas gratefully received.

Many thanks

Anita

 

[vezerid]

Anita,
you can use Goal Seek in the following manner: You know the interest
rate (say 10%) and the principal (say 1,000). Time to be entered in A1.
The following formula in B1:

=PMT(10%, A1, 1000)

Ask GS to set B1 to the desired amount by changing A1.

HTH
Kostis Vezerides

 

[Fred Smith]

The function you want is NPER.

 

[vandenberg p]

Try this:

Loan 50,000.00
PMT -5,872.98
i 10.00%
n 20 < =NPER(B3,B2,B1)

Assume the data for for loan start in B1. The formula in B4 that returns
the number of periods is shown above.

Pieter Vandenberg

: In Excel I know how to calculate a monthly repayment using PMT but is there
: any way I can calculate how long a loan would take to pay off )this is a
: question I've been asked and I'm not sure whether it can be done or not).

: I thought maybe goal seek but you can only use that on a cell containing a
: formula.

: Any ideas gratefully received.

: Many thanks

: Anita