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How to calculate the total number of monthly payments given the amount of loan ($275,000), the annual interest rate (4.35%) and the number of years (30)? I'm confused because I'm trying to use the NPER function but it depends on the PMT and the PMT also depends on the NPER, am I missing something here?

  • 1
    Number of monthly payments = number of years x 12 – Chris Degnen Mar 2 '15 at 10:01
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Assuming the rate is 4.35% nominal, compounded monthly, in Excel the formula would be

=PMT(0.003625,360,275000)

resulting in -$1,368.98

You can also use the mathematical formula here:

http://www.financeformulas.net/Loan_Payment_Formula.html

enter image description here

So

r = 0.0435/12 = 0.003625
PV = 275000
n = 30*12 = 360
P = r (PV)/(1 - (1 + r)^-n) = 1368.98
  • Hi Chris. I just wanted to say thank you for your detailed math answers ... always helpful. – Chris W. Rea Mar 2 '15 at 14:27

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