Forum Discussion
Interest calculation formula
Hi Team,
I need help with interest calculation formula. Interest should be charged as 21%. So it should be C2*0.21/12.
As per my knowledge we cannot charge Interest on interest amount hence, we need to deduct interest from arrears amount. So it should be calculated as C3-E2*0.21/12.
However, when the balance amount comes to zero or advance payment is done, formula should calculate accordingly.
Looking for your response.
8 Replies
Instead of an image, please attach your sample Excel file to facilitate testing.
Although you see no IF, the Boolean formula in E2 of the attached file means that "One-month interest is calculated on the arrears, only if such arrears are more than zero". See the effect of that formula in the snapshot below:
Hello Sachin_Bhangale,
Starting in cell E3 your formula could be:
=IF($C3*(0.21/12)<0,0,$C3*(0.21/12))
Hello PReagan
Thanks for your reply. Your formula doesn't give the value of column "E". I've manually calculated and updated those values so they are correct. Just want to check if there is any formula for it.
Thanks
- Your interest values appear to be rounded to the nearest dollar. Is this what you are seeking?
