From the course: Google Sheets: Advanced Formulas and Functions

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Determine the principal and interest components of loan payments

Determine the principal and interest components of loan payments - Google Sheets Tutorial

From the course: Google Sheets: Advanced Formulas and Functions

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Determine the principal and interest components of loan payments

- [Instructor] Calculating the amount of principal you've paid on a loan let's you determine the amount of equity you have in a purchase. That is, your down payment plus loan principal paid plus appreciation of the property, if any. You could also calculate what your new monthly payment would be if you refinance a loan at a specific interest rate and for a given length of time. Calculating the interest paid on a loan lets you find the amount of interest you've paid in a year, which you can often write off on your tax return. In this movie, I will show you how to calculate the principal component and interest component of a loan payment. I need to know six different pieces of information for these formulas. The first is the rate, which I have in C3. That's the annual interest rate. Next is the period for which I want to calculate the principal and interest components. In other words, I'm not looking at total principal and total interest, I'm looking only for one specific period. The…

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