Finance Formula Help in Excel

[noaman79]

I am working on a project and i am struggling to get the formula which would calculate the Loan Amount:

For example l have following information:


Interest Rate: 3%
Amortization Period (# of months): 360
Loan Amount: $1,200,000

Annual Debt Service: $60,710.98 ; i used this formula to calculate Annual Debt Service 12*(PMT (D5/12, D6,-D7, 0))
Monthly Payment (Annual Debt Service / 12): $5,059.25


As its shown above i used PMT formula to calculate the Annual Debt Service.

Now lets say i have following information, how can i calculate "Loan Amount" using only below information: What formula do i need to use in excel which will allow me to calculate the loan amount:

Interest Rate: 3%
Amortization Period (# of months): 360
Annual Debt Service: $60,710.98 ;
Monthly Payment (Annual Debt Service / 12): $5,059.25


Loan Amount= ???



the formula should calculate loan amount of $1,200,000


Kindly help.

 

[James006]

Hi,
Just work out Present Value ...
C3 is annual interest rate - C4 is number of months - C6 is monthly payment :

=PV(C3/12,C4,C6)

 

[noaman79]

Hi,
Just work out Present Value ...
C3 is annual interest rate - C4 is number of months - C6 is monthly payment :

=PV(C3/12,C4,C6)

@James006- Thank you so much. it works great.

 

[James006]

Glad to hear you managed to quickly solve your Finance problem