how do I calculate a monthly payment based on a variable rate?

C

Chick N Egg

I have to calculate a monthly payment based on avariable interest rate. What
is the formula I use, ex. variable rate in is A6, loan term B6, and payment
C6?
 
B

bpeltzer

Do you mean the initial loan amount is in C6?
Until the rate changes, you have to base the payments on the current rate
and term. =pmt(a6/12,b6*12,-c6). This assumes your rate and term are annual
and your payments are monthly. Once the rate changes, you'd reestablish the
payment based on the new rate, the remaining term and the remaining loan
balance.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Variable interest rate loan calculations- PLEASE HELP!!! 1
Amortization w/ variable interest rate 1
EXCEL 2007 Formula to calculate INTEREST only on a 3 month bridge 3
Function to establish the mortgage bond based on a monthly payment 0
Interest and Payment Calculations 6
APR Fee Calculation 1
What regular savings, increasing every year to reach goal 11
Calculate Interest Paid w/ Additional Payments to Principle 2

Top