Forum Discussion
Interest Calculation
Hi Team,
Please help me to understand what formula I can add in attached file to get results reflecting in G column.
Interest is calculated on 21% per year.
It should be round up to next value. Like 22.49 will be 22 & 22.50 will be 23.
Thanks & Regards
Sachin Bhangale
Sachin_Bhangale Aha. I see the problem now. Propose that you change the structure of your table a little bit. Use "Opening Balance" and "Closing Balance" to calculate the total amount due. But introduce a column "Arrears" that will be the basis for interest calculations from the first month. I did this in the attached file and conclude that this produces the results that you want.
18 Replies
Sachin_Bhangale You seem to have formulae in place already, except for cell G6. What is it that you need? Other formulae or just simpler formulae? Also wondering what the rules for calculating interest are. Does it only start in the 5th month? Only on arrears excluding previous month's interest?
Have a look at the attached file and let me know if it even comes close to what you need. If not, you need to clarify your needs.
Thanks for the file. I was busy hence, didn't get time to go through your file.
This file is quite near to what I'm looking for however, it only deduct immediate previous interest charges instead of the complete charges. So if arrears have interest of previous 2-3 months, that should be deducted and then we can apply interest on the rest amount.
I've attached a file wherein left side calculation is done using your formula but I need result as per the table available at right side.
Thanks.
Sachin_Bhangale Please see attached!
Hi Yes,
There is already one formula but it seems not right all the time and hence, I needed a new one. More simpler and correct one.
I started to apply interest from 5th month, prior to that I was not charging any interest.
Thanks.
