Amortizing loan: How much can you borrow?

6.0000% Interest rate per year i(m)

12 m = frequency of interest compounding per year
12 n = frequency of repayments
$2,000.00 amount of regular paynment on loan = annuity payment per period
30 term of loan in years
360 term in payment periods
0.5000% interest rate per payment period = i(n)/n
$333,583.23 Amounnt which can be borrowed

Calculate amount of money you could borrow from a fully ammortising loan

Calculate the regular repayment

Inputs
$500,000.00 Amount of the loan
6.0000% Loan interest rate % p.a. i(m)
12 Compoundng frequency
12 Frequency of repayments
30 Term of the loan in years
360 Term of the loan in periods
Inputs to the PMT function
0.5000% Rate
360 Nper
$500,000.00 Pv
$0.00 Fv
0 Type
Result
-$2,997.75 Regular payment on the loan
Alternative method
166.791614 Annuity factor a(n,i)
$500,000.00 Amount of loan
$2,997.75 Loan repayment

Calculate regular loan repayment

Calculate term using NPER

Inputs to the Calculation
$500,000.00 P = amount of the loan
6.0000% Loan interest rate % p.a
12 frequency of compounding
12 frequency of repayments p.a
$5,995.50 size of the regular repayment
Inputs to the NPER function
0.5000% Interest rate per payment period
-$5,995.50 PMT = regualr repayment
$500,000.00 PV = amount of loan
$0.00 FV = final extra repayment
0 Type
Results
108.1760943088 n = term in payment periods of 1 month
Handling non integer term
108 m = truncated loan term
-$1,052.68 loan oustanding at time m
-$1,057.94 amount owing at time m+1
109 m+1 = time of final payment
-$1,057.94 Amount of final payment at time m+1

Calculate loan term

Using the RATE function

$500,000.00 Amount of loan
30 Loan term in years
12 Frequency of repayments
$5,995.50 Loan repayment per period
Inputs for the RATE function
360 NPER
-$5,995.50 PMT
$500,000.00 PV
0 FV
0 Type
0 Initial Guess
Results
1.1816% Loan interest rate per period
14.1796% Loan interest rate per year

Calculate loan interest rate

Debt owing at time m

Inputs
$500,000.00 Amount of the ioan
6.0000% Loan interest rate % p.a i(m)
12 Compounding frequency p.a
12 Payment frequency p.a
30 Term of loan in years
$2,997.75 Loan repayment per period
Intermediate calculations
240 m = nper = future time m
0.500% rate
$500,000.00 pv = loan amount
-$2,997.75 pmt = loan repayment
Results
-$270,019.14 amount owing on loan

Calculate amount owing on the loan at time period m