Receive $1 today or $1 one year from now?

Annual
Simple
Which do you
Today Value
Value in 1 year Interest Rate prefer?
Receive $1
today

1.00

Receive $1 one
year from now
PV
$

1.10

1.00

FV
1.00

1.10

You can think of You can think of

PV as taking
FV as adding
interest "OUT". interest "IN".

I prefer this
because I have
10% earned interest.

Interest

1)

Interest is like rent on money

If you put money in the bank, you would like to know what it is worth with all the interest added in on some future date. This amount is
called Future Value.
=FV(rate = period rate, nper = total number of periods, pmt means periodic payment, pv means amount invested or lent out today,
type refers to the PMT: PMT at end of period = 0, PMT at beginning of period = 1)
Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is positive.
For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender the PV is negative, the PMT is positive,
and the FV is positive.

2)
3)
4)
5)
1

1st month

2nd month

3rd month

4th month

5th month

6th month

7th month

8th month

9th month

10th month

11th month

12th month

Simple Interest:
Principal (Amount loaned or amount still owed) = Present
Value = PV =
Interest Rate for one year
Interest Paid =
Total of Interest and Principal = Future Value = FV =
Total of Interest and Principal =

$ 100.00
10%
$ 10.00
$ 110.00
$ 110.00

Compound Interest
Principal (Amount loaned or amount still owed) = Present
Value = PV =

$ 100.00

Interest Rate for one year, Compounded Monthly (This

means that at the end of each month they calculate the
interest owed to you, deposit it in the account, and then
next month they pay you interest on the original principal
and the interest added to the account (interest on interest)
Number of months in one year =
Monthly Interest Rate = 10.00%/12 =
Beg Balance
1st month's Interest deposited into the account =
$100.00*0.00833 =
New Balance in the account after the interest is deposited
$100.00 + $0.83
2nd month's Interest deposited into the account =
$100.83*0.00833 =
New Balance in the account after the interest is deposited
$100.83 + $0.84
3rd month's Interest deposited into the account =
$101.67*0.00833 =
New Balance in the account after the interest is deposited
$101.67 + $0.85
4th month's Interest deposited into the account =
$102.52*0.00833 =
New Balance in the account after the interest is deposited
$102.52 + $0.85
5th month's Interest deposited into the account =
$103.38*0.00833 =
New Balance in the account after the interest is deposited
$103.38 + $0.86
6th month's Interest deposited into the account =
$104.24*0.00833 =
New Balance in the account after the interest is deposited
$104.24 + $0.87
7th month's Interest deposited into the account =
$105.11*0.00833 =
New Balance in the account after the interest is deposited
$105.11 + $0.88
8th month's Interest deposited into the account =
$105.98*0.00833 =
New Balance in the account after the interest is deposited
$105.98 + $0.88
9th month's Interest deposited into the account =
$106.86*0.00833 =
New Balance in the account after the interest is deposited
$106.86 + $0.89
10th month's Interest deposited into the account =
$107.75*0.00833 =
New Balance in the account after the interest is deposited
$107.75 + $0.90
11th month's Interest deposited into the account =
$108.65*0.00833 =
New Balance in the account after the interest is deposited
$108.65 + $0.91
12th month's Interest deposited into the account =
$109.56*0.00833 =
New Balance in the account after the interest is deposited
$109.56 + $0.91

Interest Paid =
Interest Paid =
Total of Interest and Principal = Future Value = FV =
Total of Interest and Principal = Future Value = FV =
3 Total of Interest and Principal = Future Value = FV =

10.0%
12
0.00833
100.00

0.008333
$ 100.00

0.83

0.83

100.83

100.83

0.84

0.84

101.67

101.67

0.85

0.85

102.52

102.52

0.85

0.85

103.38

103.38

0.86

0.86

104.24

104.24

0.87

0.87

105.11

105.11

0.88

0.88

105.98

105.98

0.88

0.88

106.86

106.86

0.89

0.89

107.75

107.75

0.90

0.90

108.65

108.65

0.91

0.91

109.56

109.56

0.91

0.91

110.47

110.47

10.47
10.47
110.47
110.47
$110.47

10.47
110.47
$110.47

1)
2)
3)
4)
5)
6)
7)

PMT means periodic payment (same amount each period)

PMT function calculates the period payment for a loan (For the Borrower or the Lender). The Amount of each PMT must
each PMT must be the same.
Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wall

For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender the PV is negative, the PM
Be consistent with your unit of time! If you are calculating monthly payment, you need monthly interest rate and total num
monthly, quarterly, yearly or any other length).
=PMT(rate = period rate, nper = total number of periods, pv means amount invested or lent out today, fv means amount
elapsed or amount paid after all the periods have elapsed, type refers to the PMT: PMT at end of period = 0, PMT
=FV(rate = period rate, nper = total number of periods, pmt means periodic payment, pv means amount invested or lent o
at end of period = 0, PMT at beginning of period = 1)
Borrower Point of View: At an Annual Interest Rate of 9.75% the monthly PMT paid = $523.86
$34,799.00 Annual Interest Rate
9.75%
Price of Car
$10,000.00 Monthly Interest Rate
0.81%
Down Payment
$24,799.00 Years for Loan
5
Loan Amount
($523.86) Total Months
60
Monthly Payment
-523.8601184541 Periods per Year
12
Monthly Payment
($519.64) Type, 0 = End, 1 = Beg
1
PMT
Lender Point of view: At an Annual Interest Rate of 9.75% the monthly PMT received =
$523.86
$34,799.00 Annual Interest Rate
9.75%
Price of Car
$10,000.00 Monthly Interest Rate
0.81%
Down Payment
$24,799.00 Years for Loan
5
Loan Amount
$523.86 Total Months
60
Monthly Payment
-523.8601184541 Periods per Year
12
Monthly Payment
At an Annual Interest Rate of 5.25% and a balloon payment of $5,000.00 at the end of 36
months, the monthly PMT = -$1,225.21 - Borrower's Point of View.
$50,000.00 Annual Interest Rate
5.25%
Price of Car
$5,000.00 Monthly Interest Rate
0.44%
Down Payment
$45,000.00 Years for Loan
3
Loan Amount
Balloon Payment
($5,000.00) Total Months
36
($1,225.21) Periods per Year
12
Monthly Payment
At an Annual Interest Rate of 8.50% and no payments during the first year, the monthly
PMT = -$67,328.25 - Borrower's Point of View.
$1,000,000.00 Annual Interest Rate
8.50%
Loan Amount
Years payment is put off
1 Period Interest Rate
2.13%
($1,087,747.96) Years for Loan
6
FV after 1 year
($67,328.25) Total Periods
24
Period Payment
($67,328.25) Periods per Year
4
Period Payment
($67,328.25)

me amount each period)

nder). The Amount of each PMT must be the same and the time between
the same.
s negative. Cash coming into the wallet is positive.

he Lender the PV is negative, the PMT is positive, and the FV is positive.

eed monthly interest rate and total number of months! (The period can be
any other length).
ed or lent out today, fv means amount received after all the periods have
e PMT: PMT at end of period = 0, PMT at beginning of period = 1)
, pv means amount invested or lent out today, type refers to the PMT: PMT
ginning of period = 1)

check

1087748

=RATE(nper = total number of periods, pmt means periodic payment, pv means amount
invested or lent out today, fv means amount received after all the periods have elapsed or
amount paid after all the periods have elapsed, type refers to the pmt: pmt at end of period =
1)
0, pmt at beginning of period = 1)

2)
3)

Be consistent with your unit of time! If you are calculating monthly payment, you need
monthly interest rate and total number of months! (The period can be monthly, quarterly,
yearly or any other length).
Remember, RATE returns the period rate!!!!!!

4)

Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is
positive.

5)

For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the
Lender the PV is negative, the PMT is positive, and the FV is positive.
If you pay points, then you do not get to use all the cash you
borrowed. Therefore, the Rate is really based on the cash you
receive, not the face value of the loan.
Item
House
Annual Rate
5.00%
Price
$200,000 Monthly Rate
.00417
Down
$0 Years
15
Loan
$200,000 Months
180
Periods Per
Points
0.02 Year
12
Type (0 = End, 1
PMT
-1,581.59 = Begin)
0
Adjusted
Percentage
Rate

5.31%

0.053081

1)
2)

Effective Interest Rate is always higher than APR or Nominal Rate when the compounding periods per year are
greater than . Why? Because you are earning interest on interest.
=EFFECT(nominal_rate means APR or Nominal Rate (APR = NOMINAL RATE = period interest rate * number of
compounding periods in 1 year), npery means "number of compounding periods in 1 year")

3)

Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is positive.
For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender the PV is negative,
4)
the PMT is positive, and the FV is positive.
Annual Interest Rate =
1 APR = Nominal Rate
Period Rate
Periods per Year
Effective Annual Rate
Effective Annual Rate

0.085
0.007083
12
0.08839090589263510000
0.08839090589263510000

nding periods per year are

est.
od interest rate * number of
eriods in 1 year")

g into the wallet is positive.

e Lender the PV is negative,

326455560.xls - Loan Analysis

1)
2)
3)
4)

PMT means periodic payment (same amount each period)

PMT function calculates the period payment for a loan (For the Borrower or the Lender). The Amount of each PMT must be the same and the time between
each PMT must be the same.
Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is positive.

5)

For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender the PV is negative, the PMT is positive, and the FV is positive.
Be consistent with your unit of time! If you are calculating monthly payment, you need monthly interest rate and total number of months! (The period can be
monthly, quarterly, yearly or any other length).

6)

=PMT(rate = period rate, nper = total number of periods, pv means amount invested or lent out today, fv means amount received after all the periods have
elapsed or amount paid after all the periods have elapsed, type refers to the PMT: PMT at end of period = 0, PMT at beginning of period = 1)

7)

=RATE(nper = total number of periods, pmt means periodic payment, pv means amount invested or lent out today, fv means amount received after all the
periods have elapsed or amount paid after all the periods have elapsed, type refers to the pmt: pmt at end of period = 0, pmt at beginning of period = 1)

Debt Analysis
Option#
1
2
3
4
5
6
7
Price

% Down
Payment
5.0%
15.0%
4.5%
12.0%
15.0%
20.0%
15.0%
$ 430,000.00

Compoun
ding
Periods
per year

12

Balloon
Payment
(Optional)

$ (50,000.00)

APR
Years
8.50%
30
8.25%
30
8.90%
30
9.00%
30
8.50%
30
8.00%
15
7.60%
15

Points
1
3
1
2
2
0
1

Extra Fee
400
400
450
100
125
500
750

$
$
$
$
$
$
$

Amount to
Borrow
408,500.00
365,500.00
410,650.00
378,400.00
365,500.00
344,000.00
365,500.00

Monthly
Payment
($3,141.01)
($2,745.88)
($3,274.68)
($3,044.69)
($2,810.38)
($3,287.44)
($3,409.03)

Actual Cash
Received
404,015.00
354,135.00
406,093.50
370,732.00
358,065.00
343,500.00
361,095.00

$
$
$
$
$
$
$

Adjusted
APR
8.62%
8.59%
9.02%
9.23%
8.72%
8.02%
7.80%

PMT w
Balloon
($3,110.72)
($2,714.00)
($3,246.79)
($3,017.38)
($2,780.09)
($3,142.95)
($3,259.35)

Debt Analysis with input variables: % Down Payment, APR, Years, Points, Extra Fee. See how to calculate Amount to Borrow, Monthly Payment , Actual Cash Received, Adjusted APR, and PMT w Balloon.

Page 9 of 52

1)

2)
3)
4)
5)
6)
7)
8)

APR = Annual Percentage Rate = NOMINAL RATE = period interest rate * number of compounding periods in 1 year. Th
usually calculated by the bank.

Effective Interest Rate is always higher than APR or Nominal Rate when the compounding periods per year are greater t
Because you are earning interest on interest - The Effective Interest Rate tells you in percentage terms what the rate really
multiply it plus 1 by the principal and get Future Value)
=EFFECT(APR or Nominal Rate, npery means "number of compounding periods in 1 year")
=NOMINAL(Effective Interest Rate), npery means "number of compounding periods in 1 year")
=FV(rate = period rate, nper = total number of periods, pmt means periodic payment, pv means amount invested or lent o
refers to the PMT: PMT at end of period = 0, PMT at beginning of period = 1)
Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is positive
For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender the PV is negative, the PMT
the FV is positive.
Be consistent with your unit of time! If you are calculating monthly payment, you need monthly interest rate and total numb
(The period can be monthly, quarterly, yearly or any other length).

Savings Plan that compounds interest 365 times a year, but you put money in 12 times a
1
year.
Monthly PMT =
-250
x = years
25
n for account is =
365
APR = i =
0.08
Type= 0 or 1 ==>
0
Solve for EAR first =
n for PMT =
Then from EAR, find APR (i) ==>
Then from APR (i), find period Rate
Solve for Future Value =

0.0832776
12
0.0802584
0.0066882
###

If we have a Savings Plan that compounds interest 365 times a year, but we put $250.00
in only 12 times a year, the Future Value would be $238,757.59.

MoneyTreeLoaning will:

Allow you to write a check that has a date 25 days in the future for $250 and will give you
$200 today (they cash check in 25 days).
What is the APR and EAR?
Days in Future =
25
Check Amount =
250
You get Today =
200
25 day rate is =
0.25
Days in Year =
365
# of 25 day periods in 1 year =
14.60
APR =
365.00%
EAR =
2499.48% <== correct because math formula does not trunc
EAR =

2462.32% <== Incorrect because the EFFECT function trunca

Excel Help:
Npery is truncated to an integer.
If either argument is nonnumeric, EFFECT returns the #VALUE! error value.
If nominal_rate 0 or if npery < 1, EFFECT returns the #NUM! error value.
EFFECT is calculated as follows:

e * number of compounding periods in 1 year. This is the rate

the bank.

n the compounding periods per year are greater than . Why?

tells you in percentage terms what the rate really is (You could
and get Future Value)
mber of compounding periods in 1 year")
umber of compounding periods in 1 year")
dic payment, pv means amount invested or lent out today, type
, PMT at beginning of period = 1)
s negative. Cash coming into the wallet is positive.
ive. For the Lender the PV is negative, the PMT is positive, and
ive.
nt, you need monthly interest rate and total number of months!
yearly or any other length).

you put money in 12 times a

check
0.0832776

es a year, but we put $250.00

be $238,757.59.

ure for $250 and will give you

days).

MoneyTreeLoaning will: Allow you to write a check that has a date 25 day

FV
PV

t because math formula does not truncate to an integer

ect because the EFFECT function truncates npery to an integer

VALUE! error value.

#NUM! error value.

heck that has a date 25 days in the future for $250 and will give you $200 today (they cash check in 25 days). What is the APR and EAR?

at is the APR and EAR?

NPER function calculates the = total number of periods = Years*Number of compounding

periods per year. Example 30 year loan compounded 12 times a year ==> 12*30 = 360 = Total
1)
periods.
=NPER(rate = period Rate, pmt means periodic payment, pv means amount invested or lent
out today, fv means amount received after all the periods have elapsed or amount paid after
all the periods have elapsed, type refers to the pmt: pmt at end of period = 0, pmt at beginning
2)
of period = 1)
Be consistent with your unit of time! If you are calculating monthly payment, you need monthly
interest rate and total number of months! (The period can be monthly, quarterly, yearly or any
3)
other length).
Cash Flow matters in Finance. Cash going out of the wallet is negative. Cash coming into the
4)
wallet is positive.
For the borrow the PV is positive, the PMT is negative, and the FV is negative. For the Lender
5)
the PV is negative, the PMT is positive, and the FV is positive.

How long to pay off your credit Card if you pay only the
minimum PMT required?
Balance = PV =
APR = i =
n=
Minimum Monthly PMT
n*x = NPER function =
x = n*x/n = years
Words:

###
18.00%
12
41.00
88.368
7.364

Type
0

It will take 7.36 years to pay off the credit card if we make only the
minimum payment each period.

ard if we make only the

eriod.

326455560.xls - SLN & DDB

1)

SLN is a built-in function that calculates Straight Line Depreciation. For Financial Accounting, the
Depreciation Method should match the expense to the pattern of cash flows generated by the asset.
SLN is for assets that generate even cash flows over the life of the asset.

DBB is a built-in function that calculates Double Declining Balance Depreciation. For Financial
Accounting, the Depreciation Method should match the expense to the pattern of cash flows generated
2)
by the asset. DB is for assets that generate more cash flows in the earlier years of the asset's life.
Depreciation Calculation
Asset Value:
$
Salvage Value:
$
Life:
1 Straight Line Depreciation:

2 Rate for DDB =

Year:

170,000
5,000
20
$8,250.00

2
DDB
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

$17,000.00
$15,300.00
$13,770.00
$12,393.00
$11,153.70
$10,038.33
$9,034.50
$8,131.05
$7,317.94
$6,586.15
$5,927.53
$5,334.78
$4,801.30
$4,321.17
$3,889.05
$3,500.15
$3,150.13
$2,835.12
$2,551.61
$2,296.45

Page 20 of 52

Preset Value = How much future cash flows are worth today. Think of it as interest going backwards; if we put money in
Opposite! We want to receive some cash amounts in the future
PV function calculates present Value when the cash flows are the same and are separated by regular time periods. NPV fu
2)
the present value when the amounts are not the s
1)

3)

4)
5)
6)
7)
8)

=PV( rate, nper, fv, type)

When an asset has an annuity cash flow pattern, you can

=NPV( rate, CF1, CF2. (as range or cells separated by

commas). NOTE: You cannot include Cash Flow at time 0.
=XNPV(rate, values, dates) NOTE: you can include Cash
Flow at time 0.

Calculates the net present va

Returns the net present value for a schedule of cash flows t

Cash Flow matters in Finance. Cash going out of the wallet is

For the borrow the PV is positive, the PMT is negative, and the FV is negative. For th
Be consistent with your unit of time! If you are calculating monthly payment, you need monthly interest rate

You are considering buying a machine that will yield

$35,000.00 net cash flow in for the next ten years. If you must
earn a minimum return on investment of 15.00%, should buy
1
a machine if it costs -$165,500.00?
Net Cash Flow at end of each year =
Min Return (hurdle rate or Discount Rate) =
Cost =
Years
PV =
Difference =
NPV =
2

35,000.00
15%
$(165,500.00)
10
($175,656.90)
$ 10,156.90
$21,573.03

Period

CF
0
1
2
3
4
5
6
7
8
9
10

$
$
$
$
$
$
$
$
$
$

40,000.00
40,000.00
40,000.00
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00

NPV =
3 RRR

0.15

Date

Year
1/1/2007
1/1/2008
1/1/2010
1/1/2011
1/1/2012

CF
0
1
3
4
5

- 500.00
200.00
100.00
100.00
100.00

1/1/2013

1/1/2009
366

100.00

as interest going backwards; if we put money in the bank today (present value) it will be worth some future value amount in the future: Pres
want to receive some cash amounts in the future, what amount do we have to put in the bank today?
nd are separated by regular time periods. NPV function lets us calculate the present value when the amounts are not the same. XNPV funct
he present value when the amounts are not the same and the times are not the same.

asset has an annuity cash flow pattern, you can use the PV function for Capital Investment Decision. An annuity has equal payments at eq

Calculates the net present value for a series of cash flows that is periodic (equal time between each cash flow)
e net present value for a schedule of cash flows that is not necessarily periodic. To calculate the net present value for a series of cash flows
the NPV function.
atters in Finance. Cash going out of the wallet is negative. Cash coming into the wallet is positive.
e PMT is negative, and the FV is negative. For the Lender the PV is negative, the PMT is positive, and the FV is positive.
monthly payment, you need monthly interest rate and total number of months! (The period can be monthly, quarterly, yearly or any other leng

PV

PV
- 500.00
173.91
65.73
57.15
49.70

XNPV
- 500.00
173.91
65.75
57.18
49.72

- 110.31

43.20
- 110.31

43.23
- 110.21

me future value amount in the future: Present Value is the

y?
e amounts are not the same. XNPV function lets us calculate

on. An annuity has equal payments at equal time intervals.

l time between each cash flow)

t present value for a series of cash flows that is periodic, use

and the FV is positive.

monthly, quarterly, yearly or any other length).

FV function calculates the future value of a lump sum (invested at very

beginning) or regular payments (called PMT and amount is the same for
1)
each period and the amount is always the same).
2)
PMT means periodic payment (same amount each period)
PMT function calculates the period payment for a loan (For the Borrower
or the Lender). The Amount of each PMT must be the same and the
3)
time between each PMT must be the same.
Cash Flow matters in Finance. Cash going out of the wallet is negative.
Cash coming into the wallet is positive. Time period Matters in Finance:
Example - if you are making monthly payments, then total number of
4)
periods must be total number of months.
For the borrow the PV is positive, the PMT is negative, and the FV is
negative. For the Lender the PV is negative, the PMT is positive, and the
5)
FV is positive.
=FV(rate = period rate, nper = total number of periods, pmt means
periodic payment, pv means amount invested or lent out today, type
refers to the PMT: PMT at end of period = 0, PMT at beginning of period
6)
= 1)

7)

=PMT(rate = period rate, nper = total number of periods, pv means

amount invested or lent out today, fv means amount received after all
the periods have elapsed or amount paid after all the periods have
elapsed, type refers to the PMT: PMT at end of period = 0, PMT at
beginning of period = 1)
Monthly PMT
years
Months
Annual Rate
Monthly Rate
FV

$250.00
30
360
10%
0.833%
$565,121.98

PV
years
Months
Annual Rate
Monthly Rate

$565,121.98
35
420
7.00%
0.5833%
$3,451.38
250,000.00

Monthly PMT
Leave to Kids

Amount put in
Amount taken out
Interest

$90,000.00
$1,699,578.39
$1,609,578.39

1)

2)
3)
4)
5)

An Amortization table breaks apart your Period PMT into 2 pieces: 1) How much goes to reducing
the loan balance and 2) How much the bank takes as interest.
=PMT(rate = period rate, nper = total number of periods, pv means amount invested or lent out
today, fv means amount received after all the periods have elapsed or amount paid after all the
periods have elapsed, type refers to the PMT: PMT at end of period)
An alternative to using the IPMT function to calculate the period interest, use (Balance From
Period Before)*(Period Interest Rate)
PMT )-(Period Interest)
Use the IF function to help make you Amortization Table more "Updateable".
Item
Price
Down
Loan
PMT
PMT
PMT
PMT

House
$450,000.00
$45,000.00
$405,000.00
-3,042.63
3,042.63
3,042.63
3,042.63

Periods PMT
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63

Annual Rate
Monthly Rate
Years
Months
Periods Per Year
Type (0 = End, 1 = B
Total PMT Paid
Total Interest Paid
Total Principal Paid
Total Principal Paid
Total Paid

8.25%
0.00687500
30
360
12
0
724,700.79
$369,700.79
$405,000.00
450,000.00
819,700.79

Interest Paid
(Amount that you
can deduct/earn for Loan Reduction Balance
taxes and on
income statement)
$405,000.00
2,784.38
258.25
$404,741.75
2,782.60
260.03
$404,481.72
2,780.81
50,261.82
$354,219.90
2,435.26
607.37
$353,612.53
2,431.09
611.54
$353,000.99
2,426.88
615.75
$352,385.24
2,422.65
619.98
$351,765.26
2,418.39
624.24
$351,141.01
2,414.09
628.54
$350,512.48
2,409.77
632.86
$349,879.62
2,405.42
637.21
$349,242.41
2,401.04
641.59
$348,600.83
2,396.63
646.00
$347,954.83
2,392.19
650.44
$347,304.39
2,387.72
654.91
$346,649.47
2,383.22
659.41
$345,990.06
2,378.68
663.95
$345,326.11
2,374.12
668.51
$344,657.60
2,369.52
673.11
$343,984.49
2,364.89
677.74
$343,306.75
2,360.23
682.40
$342,624.36
2,355.54
687.09
$341,937.27
2,350.82
691.81
$341,245.46
2,346.06
696.57
$340,548.89

Additional
Payment

50,000

=IPMT(
=PPMT(

25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63

2,341.27
2,336.45
2,331.60
2,326.71
2,321.79
2,316.83
2,311.84
2,306.82
2,301.76
2,296.66
2,291.54
2,286.37
2,281.17
2,275.94
2,270.67
2,265.36
2,260.02
2,254.64
2,249.22
2,243.76
2,238.27
2,232.74
2,227.17
2,221.57
2,215.92
2,210.24
2,204.52
2,198.75
2,192.95
2,187.11
2,181.23
2,175.31
2,169.34
2,163.34
2,157.29
2,151.21
2,145.08
2,138.91
2,132.70
2,126.44
2,120.14
2,113.80
2,107.41
2,100.98
2,094.51
2,087.99
2,081.43
2,074.82
2,068.17
2,061.47

701.36
706.18
711.03
715.92
720.84
725.80
730.79
735.81
740.87
745.97
751.09
756.26
761.46
766.69
771.96
777.27
782.61
787.99
793.41
798.87
804.36
809.89
815.46
821.06
826.71
832.39
838.11
843.88
849.68
855.52
861.40
867.32
873.29
879.29
885.33
891.42
897.55
903.72
909.93
916.19
922.49
928.83
935.22
941.65
948.12
954.64
961.20
967.81
974.46
981.16

$339,847.54
$339,141.36
$338,430.33
$337,714.40
$336,993.56
$336,267.76
$335,536.97
$334,801.16
$334,060.29
$333,314.32
$332,563.23
$331,806.97
$331,045.51
$330,278.82
$329,506.86
$328,729.59
$327,946.98
$327,158.98
$326,365.57
$325,566.70
$324,762.34
$323,952.46
$323,137.00
$322,315.94
$321,489.23
$320,656.84
$319,818.72
$318,974.85
$318,125.17
$317,269.65
$316,408.25
$315,540.93
$314,667.64
$313,788.35
$312,903.02
$312,011.59
$311,114.04
$310,210.32
$309,300.39
$308,384.20
$307,461.71
$306,532.88
$305,597.67
$304,656.02
$303,707.90
$302,753.26
$301,792.06
$300,824.25
$299,849.79
$298,868.63

75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63

2,054.72
2,047.93
2,041.09
2,034.21
2,027.27
2,020.29
2,013.26
2,006.19
1,999.06
1,991.89
1,984.66
1,977.39
1,970.07
1,962.69
1,955.27
1,947.79
1,940.26
1,932.69
1,925.06
1,917.37
1,909.64
1,901.85
1,894.00
1,886.11
1,878.16
1,870.15
1,862.09
1,853.97
1,845.80
1,837.57
1,829.29
1,820.95
1,812.55
1,804.09
1,795.58
1,787.00
1,778.37
1,769.68
1,760.93
1,752.11
1,743.24
1,734.31
1,725.31
1,716.26
1,707.14
1,697.96
1,688.71
1,679.40
1,670.03
1,660.60

987.91
994.70
1,001.54
1,008.42
1,015.36
1,022.34
1,029.37
1,036.44
1,043.57
1,050.74
1,057.97
1,065.24
1,072.56
1,079.94
1,087.36
1,094.84
1,102.36
1,109.94
1,117.57
1,125.26
1,132.99
1,140.78
1,148.63
1,156.52
1,164.47
1,172.48
1,180.54
1,188.66
1,196.83
1,205.06
1,213.34
1,221.68
1,230.08
1,238.54
1,247.05
1,255.63
1,264.26
1,272.95
1,281.70
1,290.52
1,299.39
1,308.32
1,317.32
1,326.37
1,335.49
1,344.67
1,353.92
1,363.23
1,372.60
1,382.03

$297,880.72
$296,886.02
$295,884.48
$294,876.06
$293,860.70
$292,838.36
$291,809.00
$290,772.55
$289,728.98
$288,678.24
$287,620.28
$286,555.03
$285,482.47
$284,402.53
$283,315.17
$282,220.33
$281,117.97
$280,008.02
$278,890.45
$277,765.19
$276,632.20
$275,491.41
$274,342.79
$273,186.26
$272,021.79
$270,849.31
$269,668.77
$268,480.11
$267,283.28
$266,078.23
$264,864.89
$263,643.20
$262,413.12
$261,174.58
$259,927.52
$258,671.90
$257,407.64
$256,134.68
$254,852.98
$253,562.46
$252,263.08
$250,954.76
$249,637.44
$248,311.07
$246,975.58
$245,630.90
$244,276.99
$242,913.76
$241,541.16
$240,159.13

125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63

1,651.09
1,641.53
1,631.89
1,622.20
1,612.43
1,602.60
1,592.70
1,582.73
1,572.69
1,562.59
1,552.41
1,542.17
1,531.85
1,521.46
1,511.01
1,500.48
1,489.87
1,479.20
1,468.45
1,457.63
1,446.73
1,435.76
1,424.71
1,413.59
1,402.39
1,391.11
1,379.76
1,368.33
1,356.81
1,345.22
1,333.55
1,321.80
1,309.97
1,298.06
1,286.07
1,273.99
1,261.83
1,249.59
1,237.26
1,224.85
1,212.35
1,199.77
1,187.10
1,174.34
1,161.50
1,148.57
1,135.54
1,122.43
1,109.23
1,095.94

1,391.54
1,401.10
1,410.74
1,420.43
1,430.20
1,440.03
1,449.93
1,459.90
1,469.94
1,480.04
1,490.22
1,500.46
1,510.78
1,521.17
1,531.62
1,542.15
1,552.76
1,563.43
1,574.18
1,585.00
1,595.90
1,606.87
1,617.92
1,629.04
1,640.24
1,651.52
1,662.87
1,674.30
1,685.82
1,697.41
1,709.07
1,720.82
1,732.66
1,744.57
1,756.56
1,768.64
1,780.80
1,793.04
1,805.37
1,817.78
1,830.28
1,842.86
1,855.53
1,868.29
1,881.13
1,894.06
1,907.08
1,920.20
1,933.40
1,946.69

$238,767.59
$237,366.49
$235,955.76
$234,535.32
$233,105.12
$231,665.09
$230,215.16
$228,755.26
$227,285.32
$225,805.28
$224,315.06
$222,814.59
$221,303.82
$219,782.65
$218,251.03
$216,708.87
$215,156.12
$213,592.68
$212,018.50
$210,433.50
$208,837.60
$207,230.73
$205,612.81
$203,983.77
$202,343.53
$200,692.01
$199,029.14
$197,354.83
$195,669.02
$193,971.61
$192,262.54
$190,541.71
$188,809.06
$187,064.49
$185,307.93
$183,539.29
$181,758.50
$179,965.45
$178,160.09
$176,342.31
$174,512.03
$172,669.17
$170,813.64
$168,945.36
$167,064.23
$165,170.16
$163,263.08
$161,342.88
$159,409.49
$157,462.80

175
176
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180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63

1,082.56
1,069.08
1,055.51
1,041.85
1,028.10
1,014.25
1,000.30
986.26
972.12
957.89
943.56
929.12
914.59
899.96
885.23
870.40
855.47
840.43
825.29
810.05
794.70
779.24
763.68
748.01
732.24
716.35
700.36
684.26
668.04
651.72
635.28
618.73
602.07
585.29
568.39
551.38
534.26
517.01
499.65
482.16
464.56
446.84
428.99
411.02
392.93
374.71
356.37
337.90
319.31
300.58

1,960.07
1,973.55
1,987.12
2,000.78
2,014.53
2,028.38
2,042.33
2,056.37
2,070.51
2,084.74
2,099.07
2,113.51
2,128.04
2,142.67
2,157.40
2,172.23
2,187.16
2,202.20
2,217.34
2,232.58
2,247.93
2,263.39
2,278.95
2,294.62
2,310.39
2,326.28
2,342.27
2,358.37
2,374.59
2,390.91
2,407.35
2,423.90
2,440.56
2,457.34
2,474.24
2,491.25
2,508.37
2,525.62
2,542.98
2,560.47
2,578.07
2,595.79
2,613.64
2,631.61
2,649.70
2,667.92
2,686.26
2,704.73
2,723.32
2,742.05

$155,502.72
$153,529.17
$151,542.06
$149,541.28
$147,526.75
$145,498.36
$143,456.03
$141,399.66
$139,329.16
$137,244.42
$135,145.34
$133,031.84
$130,903.80
$128,761.13
$126,603.74
$124,431.51
$122,244.35
$120,042.15
$117,824.81
$115,592.22
$113,344.29
$111,080.90
$108,801.95
$106,507.34
$104,196.94
$101,870.67
$99,528.40
$97,170.03
$94,795.44
$92,404.53
$89,997.18
$87,573.28
$85,132.72
$82,675.38
$80,201.14
$77,709.89
$75,201.52
$72,675.90
$70,132.92
$67,572.45
$64,994.38
$62,398.59
$59,784.95
$57,153.34
$54,503.64
$51,835.72
$49,149.46
$46,444.74
$43,721.41
$40,979.37

225
226
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228
229
230
231
232
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234
235
236
237
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239
240
241
242
243
244
245
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251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274

3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
3,042.63
554.91
-

281.73
262.75
243.64
224.40
205.02
185.51
165.87
146.09
126.18
106.13
85.94
65.61
45.15
24.54
3.79
-

2,760.90
2,779.88
2,798.99
2,818.23
2,837.61
2,857.12
2,876.76
2,896.54
2,916.45
2,936.50
2,956.69
2,977.02
2,997.48
3,018.09
551.12
-

$38,218.47
$35,438.59
$32,639.61
$29,821.37
$26,983.76
$24,126.65
$21,249.89
$18,353.35
$15,436.90
$12,500.40
$9,543.71
$6,566.69
$3,569.21
$551.12
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Item
Price
Down
Loan
PMT
PMT
PMT
PMT

House
$150,000.00
$0.00
$150,000.00
-3,809.01
3,809.01
3,809.01
3,809.01

Periods

PMT
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01

Annual Rate
Monthly Rate
Years
Months
Periods Per Year
Type (0 = End, 1 = Begin)
Total PMT Paid
Total Interest Paid
Total Principal Paid from PMT
Total Principal Paid with Down
Total Paid

6.00%
0.01500000
15
60
4
0
228,541.01
$78,541.01
$150,000.00
150,000.00
228,541.01

Interest Paid (Amount that you

can deduct/earn for taxes and
on income statement)
Loan Reduction Balance
150,000.00
2,250.00
1,559.01
148,440.99
2,226.61
1,582.40
146,858.59
2,202.88
1,606.13
145,252.46
2,178.79
1,630.22
143,622.24
2,154.33
1,654.68
141,967.56
2,129.51
1,679.50
140,288.06
2,104.32
1,704.69
138,583.37
2,078.75
1,730.26
136,853.11
2,052.80
1,756.21
135,096.90
2,026.45
1,782.56
133,314.34
1,999.72
1,809.29
131,505.05
1,972.58
1,836.43
129,668.62
1,945.03
1,863.98
127,804.64
1,917.07
1,891.94
125,912.70
1,888.69
1,920.32
123,992.38
1,859.89
1,949.12
122,043.26
1,830.65
1,978.36
120,064.90
1,800.97
2,008.04
118,056.86
1,770.85
2,038.16
116,018.70
1,740.28
2,068.73
113,949.97
1,709.25
2,099.76
111,850.21
1,677.75
2,131.26
109,718.95
1,645.78
2,163.23
107,555.72
1,613.34
2,195.67
105,360.05
1,580.40
2,228.61
103,131.44
1,546.97
2,262.04
100,869.40
1,513.04
2,295.97
98,573.43
1,478.60
2,330.41
96,243.02
1,443.65
2,365.36
93,877.66
1,408.16
2,400.85
91,476.81
1,372.15
2,436.86
89,039.95
1,335.60
2,473.41
86,566.54
1,298.50
2,510.51
84,056.03
1,260.84
2,548.17
81,507.86

35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84

3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.01
3,809.42
-

1,222.62
1,183.82
1,144.44
1,104.48
1,063.91
1,022.73
980.94
938.52
895.46
851.76
807.40
762.37
716.67
670.29
623.21
575.42
526.92
477.68
427.71
377.00
325.52
273.26
220.23
166.39
111.76
56.30
-

2,586.39
2,625.19
2,664.57
2,704.53
2,745.10
2,786.28
2,828.07
2,870.49
2,913.55
2,957.25
3,001.61
3,046.64
3,092.34
3,138.72
3,185.80
3,233.59
3,282.09
3,331.33
3,381.30
3,432.01
3,483.49
3,535.75
3,588.78
3,642.62
3,697.25
3,753.12
-

78,921.47
76,296.28
73,631.71
70,927.18
68,182.08
65,395.80
62,567.73
59,697.24
56,783.69
53,826.44
50,824.83
47,778.19
44,685.85
41,547.13
38,361.33
35,127.74
31,845.65
28,514.32
25,133.02
21,701.01
18,217.52
14,681.77
11,092.99
7,450.37
3,753.12
0.00
-

85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134

135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184

185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234

235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284

285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334

335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360

Additional Payment

326455560.xls - Tax

1)
2)
3)

=CUMIPMT( rate = period rate, nper = total periods, pv = loan balance at beginning, start_period = 1st period that you want to add the
interest, end_period = last period that you want to add the interest)
The Tax column tells us how much we save on our taxes
Net Cash out is the actual cash you will have paid out that is associated with the Interest Expense

28.00% Tax Rate

1
2
3
4
5
6
7
8

Cumulative
Interest For Year
(8,858.28)
(8,466.92)
(8,051.54)
(7,610.67)
(7,142.75)
(6,646.12)
(6,119.01)
(5,559.55)

TAX
(2,480.32)
(2,370.74)
(2,254.43)
(2,130.99)
(1,999.97)
(1,860.91)
(1,713.32)
(1,556.67)

Net cash out

(6,377.96)
(6,096.18)
(5,797.11)
(5,479.68)
(5,142.78)
(4,785.20)
(4,405.69)
(4,002.88)

(4,965.77)

(1,390.42)

(3,575.35)

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

(4,335.55)
(3,666.65)
(2,956.71)
(2,203.21)
(1,403.47)
(554.65)
-

(1,213.95)
(1,026.66)
(827.88)
(616.90)
(392.97)
(155.30)
-

(3,121.59)
(2,639.99)
(2,128.83)
(1,586.31)
(1,010.50)
(399.35)
-

Year

Item
House
Price
$150,000.00
Down
$0.00
Loan
$150,000.00
PMT
-3,809.01
Annual Rate
6.00%
Monthly Rat
0.01500000
Years
15
Months
60
Periods Per
4
Year
Type (0 =
End, 1 =
Begin)
0

Page 52 of 52