Formula for Interest calculation on reducing balance method without monthly schedule

A

aaleem

Board Regular
Joined
Sep 26, 2014
Messages
56
Office Version
  1. 2016
HI,

I have no. of leases which I want to calculate the interest on reducing balance method based on the start date and end date for a specific period within the lease term. for each lease, I do not want to create a monthly schedule. Is there any formula where I can drive the interest value based on the reducing the balance method for a specific period?

I'm attaching a sample datasheet.

any help will be appreciated.

regards
aleem
Book1 - 2021-07-06T233853.913.xls
ABCDEFGHIJKL
1PeriodSchedule Begin DateBeginning BalancePayment AmountInterest AmountReduction AmountEnding BalanceCur Cod
265134.4365134.43USDAmount$ 65,134.43
3101-04-202165134.431500271.391228.6163905.83USDAnnual %5%
4201-05-202163905.831500266.271233.7362672.1USDTerm in years4
5301-06-202162672.11500261.131238.8761433.23USDStart Date01-03-21
6401-07-202161433.231500255.971244.0360189.21USDPayment type:End of the Period
7501-08-202160189.211500250.791249.2158940USDPayment frequency:Monthly
8601-09-2021589401500245.581254.4257685.58USDInterest Compounding Frequency:Monthly
9701-10-202157685.581500240.361259.6456425.94USD
10801-11-202156425.941500235.111264.8955161.04USD
11901-12-202155161.041500229.841270.1653890.88USDScheduled Monthly payment:$ 1,500.00
121001-01-202253890.881500224.551275.4552615.43USDScheduled number of payments:48
131101-02-202252615.431500219.231280.7751334.66USDInterest Rate(Per Period):0.004166667
141201-03-202251334.661500213.891286.1150048.55USD
151301-04-202250048.551500208.541291.4648757.09USD
161401-05-202248757.091500203.151296.8547460.24USD
171501-06-202247460.241500197.751302.2546157.99USDInterest for period
181601-07-202246157.991500192.321307.6844850.32USD
191701-08-202244850.321500186.881313.1243537.19USDFrom Period01-04-21
201801-09-202243537.191500181.41318.642218.6USDto Period30-06-21
211901-10-202242218.61500175.911324.0940894.51USD
222001-11-202240894.511500170.391329.6139564.9USDInterest amount1054.76<How do I get this value by formula
232101-12-202239564.91500164.851335.1538229.76USDWithout creating a monthly schedule
242201-01-202338229.761500159.291340.7136889.05USD
252301-02-202336889.051500153.71346.335542.75USD
262401-03-202335542.751500148.091351.9134190.85USD
272501-04-202334190.851500142.461357.5432833.31USD
282601-05-202332833.311500136.811363.1931470.11USD
292701-06-202331470.111500131.131368.8730101.24USD
302801-07-202330101.241500125.421374.5828726.66USD
312901-08-202328726.661500119.691380.3127346.36USD
323001-09-202327346.361500113.941386.0625960.3USD
333101-10-202325960.31500108.171391.8324568.47USD
343201-11-202324568.471500102.371397.6323170.84USD
353301-12-202323170.84150096.551403.4521767.38USD
363401-01-202421767.38150090.71409.320358.08USD
373501-02-202420358.08150084.831415.1718942.9USD
383601-03-202418942.9150078.931421.0717521.83USD
393701-04-202417521.83150073.011426.9916094.84USD
403801-05-202416094.84150067.061432.9414661.9USD
413901-06-202414661.9150061.091438.9113222.99USD
424001-07-202413222.99150055.11444.911778.09USD
434101-08-202411778.09150049.081450.9210327.16USD
444201-09-202410327.16150043.031456.978870.19USD
454301-10-20248870.19150036.961463.047407.15USD
464401-11-20247407.15150030.861469.145938.02USD
474501-12-20245938.02150024.741475.264462.76USD
484601-01-20254462.76150018.591481.412981.35USD
494701-02-20252981.35150012.421487.581493.78USD
504801-03-20251493.7815006.221493.78USD
Sheet1
Cell Formulas
RangeFormula
K2K2=+C2
K11K11=+D3
K13K13=+K3/12
K22K22=SUM(E3:E6)
 

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To return the cumulative interest paid between two periods, use the function CUMIPMT...

=CUMIPMT(5%/12,48,65134.43,1,4,0)

...where the number 1 specifies the first period and the number 4 specifies the fourth period.

Based on your sample worksheet, though, first replace 30-06-21 in cell K20 with 01-07-21, and then try...

=CUMIPMT(K3/12,K12,K2,MATCH(K19,B3:B50,0),MATCH(K20,B3:B50,0),0)

Hope this helps!
 
Upvote 0
Solution
Thank you so much Domenic, yes this is perfect.

I followed your guidance of replacing period 1 and with end number of the period with YEARFRAC function and got the results
=CUMIPMT(K3/12,K12,K2,1,YEARFRAC(K19,K20)*12+1,0)

kind regards
aleem
 
Upvote 0
That's great, glad you were able to adopt it to suit your needs. And thanks for the feedback.

Cheers!
 
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