Loan repayment calculator

[BrutalLogiC]

hope someone can help, trying to work out how much I would need to pay each month for a loan/mortgage

loan value 32,5000,000
interest rate 3%
term 15 years

I'm trying to work out what the formula would be to work out how much interest payments only would be each month

also would the formula would be to work out interest and full loan value payments

I can find calculators on the internet giving me the answer 81,208 and 224,415 (or thereabouts) but is there a formula I can enter?

Thank you!

 

[joeu2004]

I assume the loan value is 32,500,000.

For an interest-only payment, the amount is simply the monthly interest based on the principal. That would be =32500000*3%/12, which is 81,250, not 81,208.

(81,208 would be the interest-only payment for a loan of 32,483,200, to wit: =81208*12/3%. Alternatively, the annual rate might not be exactly 3%, and/or the monthly rate might be caluclated differently; there are several methods in common usage.)

For the common amortization of the loan based on the actuarial method, which pays all interest and some principal each month until the outstanding balance is zero, the monthly payment is:

=PMT(3%/12, 15*12, -32500000)

which is about 224,439, not 224,415.

(Again, the difference could be due a different principal, a more-precise annual rate, and/or a different method of calculating the monthly rate.)

Note that the PMT result and principal must have opposite signs (positive v. negative). The choice of sign is arbitrary. I choose for the PMT result to be positive. So the principal must be negative: -32,500,000 instead of 32,500,000.