Loan Interest Calculation

Hollysan
Hollysan Registered Posts: 68 ? ? ?
Does anyone have any ideas about how to calculate monthly intest on a repayment loan? My client has some paperwork missing relating to a loan which was paid off during the 09/10 tax year. His annual statement runs Nov 09-Apr 10 (redemption), so I am missing April to Nov 09 monthly interest amounts. I guess this will mean using the compound interest formula but I havent' had to use it for years! Are there any calculators out there that anyone knows about?

Many thanks for any suggestions.

Hollysan

Comments

  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Does he not have the statement which runs to April 09? You could then see the movement between that statement at the opening balance on the Nov statement. You could then calculate the interest using the repayments made.
    Regards,

    Burg
  • Hollysan
    Hollysan Registered Posts: 68 ? ? ?
    Hello Ian,

    Thanks, but no, that is the missing paperwork! He has a statement which runs up to 31 August 09, but that isn't much help either because the layout is different to the more recent one, and has the interest in one lump added to the principal at the beginning of the year, so no monthly breakdowns of interest. Of course I know what his repayments were, they have stayed the same. But the loan is the classic repayment type where the interest decreases each month as the outstanding capital decreases, so I can estimate it but it won't be exact.

    He doesn't seem to have anything which covers Sep and Oct 09 - I have asked, he has looked, but no luck.

    I need a calculator or a formula which helps me work out the interest and capital repayed month by month.

    Any ideas?!

    Thanks for replying, btw.

    Hollysan
  • ademoore
    ademoore Registered Posts: 146 ? ? ?
    Loan Repayment Calculator

    Anything like this any help to you?

    http://www.thisismoney.co.uk/loan-repayments-calculator
  • Hollysan
    Hollysan Registered Posts: 68 ? ? ?
    Thanks Ademoore, but sadly no. I need to work out the interest month by month to fill in the gaps!

    Thanks anyway. Hey - you're near me. I am 'over the border' in South Norfolk.

    Hollysan
  • ademoore
    ademoore Registered Posts: 146 ? ? ?
    Try this...

    Here is a link to a great Excel template for loan repayments - you enter loan amount, interest rate, length of loan (as in time) and number of payments, and it will break it down on a monthly basis.

    http://www.excely.com/template/loan-calculator.shtml

    Nice to see someone so close!!!
  • Hollysan
    Hollysan Registered Posts: 68 ? ? ?
    Thanks!

    Dear Ademoore,

    Thanks very much, that was exactly the sort of thing I meant. Will have great fun using it!

    Hollysan
Privacy Policy