Aug 30 2021 08:07 AM
HP all in one, Windows 10
I am borrowing funds to finance a private mortgage. i want to track the interest paid on the loan for tax purposes, as well as track the interest charged to finance the mortgage as they are at 2 different rates. the interested charged to finance will be on the depreciating balance of the mortgage.
any suggestions please?
Aug 30 2021 10:56 AM
Solution
First suggestion: Please post a copy of whatever spreadsheet you've developed so far.
This would include the various numbers to incorporate:
Are you expecting both loan and mortgage payments to include principle AND interest, or will one or both be interest only? Do you want to allow for payments over and above the principle?
I gather you're the one who will be paying off the loan, and you are the one granting the mortgage... it's not necessary for you to reveal private or confidential data here, but it would help if your role is clear AND if some realm of reality is reflected in the numbers referenced above (i.e., you don't need to tell us the actual amounts of the loan/mortagage, but something that gives an idea of the ratio....and is somewhat "real world" like)
Aug 30 2021 11:11 AM
Aug 30 2021 11:12 AM
Aug 30 2021 12:16 PM
See if the attached makes sense. FWIW, I know my way around Excel, but am NOT a financial expert. The financial functions are available to you as they are to me. I tried to make sense of them here, and think the numbers look realistic, but would happily hear from others who may know them more fully.
I did make use of a few assumptions which you can change, in the tables there with a light blue background. The variables there are referenced by name in the formulas.
In the case of the Loan, I kept the loan balance as a steady 350K; in the case of the mortgage, the balance declines by the amount of principle paid each month.
Aug 30 2021 01:24 PM
I n
made some adjustments keeping the mortgage payment the same each bi week as well as the payment to the loan.
do these make sense to you
Aug 30 2021 03:30 PM
Since the mortgage is a private one, you and the payor can pretty much do whatever you like. To give added flexibility, I've added a column here to account for additional payments in case the payor chooses to pay extra in any given period.
And then, since you apparently want your payment of principle to the bank loaning you the money-- you want that principle payment to equal the amount paid on principle payment on the mortgage--I've modified the formula there to accomplish that. But also, because the interest rates and payment periods of the two loans are quite different--bi-weekly vs monthly--you can't just copy the balance column from the one to the other. In fact, since you're repaying the loan monthly and getting paid by the mortgage bi-weekly, you will need to pay a larger amount per month than the bi-weekly principle payment you receive. Mathematically, it would work out to 26/12 times the bi-weekly payment of $708.26. The resulting number is $1534.55.
Otherwise, I think those all look reasonable. You can see how changing the assumptions in the cells with blue backgrounds will cascade through the entire spreadsheet.
Aug 30 2021 03:45 PM
Aug 30 2021 05:11 PM
Unless they're really going to be like clockwork, I'd do the dates as you go along.
Here's a good website for your learning. I've set if for some of the date-related functions, but it can help with lots of functions.
https://exceljet.net/formula/dynamic-date-list
Oct 22 2021 12:54 PM
Feb 09 2022 02:27 PM - edited Feb 09 2022 02:28 PM
I am trying to calculate mortgage interest amounts for a mortgage I hold. The balanace is 54,953.18, 5.5%, monthly payments $656.
What is a formula for calculating monthly interest? How do I specify division? I have used balance x 5.5% divide by 365 days x number of days in month. I am not sure I have the division indicator correct. I get an error message that reads #NAME?
Feb 11 2022 05:50 AM
You wrote:
What is a formula for calculating monthly interest? How do I specify division? I have used balance x 5.5% divide by 365 days x number of days in month. I am not sure I have the division indicator correct. I get an error message that reads #NAME?
It would help if you copied the actual formula.
For example, I'm interpreting what you've said to mean that your actual formula reads something like the following:
=A1*((.055/365)*B1
where A1 is the cell containing balance and B1 is the cell containing the number of days in the month
In any event, to answer your question about the "division indicator," it's the / character. So .055/365 is read by excel to mean ".055 divided by 365"
That said, maybe the most helpful thing with regard to calculating interest rate would be to refer you to the built-in function that performs that task. RATE Here's an on-line reference that explains it in detail. https://exceljet.net/excel-functions/excel-rate-function
Feb 11 2022 06:50 AM
@mathetes it was @ssmccayjunocom who wrote that question to you. it wasn't me. he seems to have found you from your replies to me earlier
but thank you again
Feb 11 2022 08:57 AM - edited Feb 11 2022 08:58 AM
Indeed. And it was to @ssmccayjunocom that I had replied. The system just notifies anybody and everybody who had been part of the thread, even though, in this case, it was quite an old thread. I thought about recommending to him (her?) that a new thread be started, but it was easier to just reply. (No need to reply to this one). :)
Aug 30 2021 10:56 AM
Solution
First suggestion: Please post a copy of whatever spreadsheet you've developed so far.
This would include the various numbers to incorporate:
Are you expecting both loan and mortgage payments to include principle AND interest, or will one or both be interest only? Do you want to allow for payments over and above the principle?
I gather you're the one who will be paying off the loan, and you are the one granting the mortgage... it's not necessary for you to reveal private or confidential data here, but it would help if your role is clear AND if some realm of reality is reflected in the numbers referenced above (i.e., you don't need to tell us the actual amounts of the loan/mortagage, but something that gives an idea of the ratio....and is somewhat "real world" like)