I have a simple spreadsheet that calculates the mortgage payment (using PMT) once user enters some key fields. I am also calculating the housing ratio (B9) which is the mortgage payment(B6) divided by income (B7). I am comparing the housing ratio to the maximum housing ratio (B8). There are many times when the housing ratio (B9) exceeds the maximum housing ratio (B8) and I need a formula in cell B11 that will tell me by how much I have to reduce the loan amount in (B3) to NOT exceed the maximum housing ratio in B8.
Can someone help me out with the correct formula?
Being that this is a pretty simple calculations, I'd suggest just doing it manually using iterative calculation.
First, enable iterative calculations for your workbook via File > Options > Formulas > "Enable iterative calculations."
Then, edit the formula for the loan amount to be (sale price * LTV) - reduce by
Doesn't take long the enter a few different numbers in for the "reduce by" to find it needs to be reduced by ~$6786.
If you want to make it a little more clear you can add another row under Loan Amount like so:
Related
I am trying to build a bit of a tracker within Excel/Google Sheets to identify which 'home loan' has the combination of highest interest rate PLUS loan/mortgage size.
The formula I've built so far works for the below conditions;
There is only 1 loan with the highest interest rate, or;
If there are multiple loans that have the highest interest rate, the loan that is the largest is included within that condition.
Where this formula doesn't work is when;
When there are multiple loans with the highest interest rate, however these loans are NOT the largest loan size... I believe the issue is due to the fact I'm including a 'max' statement as part of the match condition. Please see cell reference I8:L10 as an example.
I'm unsure how to achieve this within a formula to identify;
The loan with the highest interest rate
Of the loans with the highest interest rate, which has the largest mortgage/loan size.
Please note the Interest Rate's vary within the data set
Formula Used:
=if(countif($E3:$H3,max($E3:$H3))>1,
if(iserror(index($E$1:$H$1,match(1,(max($E3:$H3)=E3)*(max($A3:$D3)=A3),0))=I$1),"Inactive","Active"),
if(index($E$1:$H$1,match(max($E3:$H3),$E3:$H3,0))=I$1,"Active","Inactive"))
Link to spreadsheet
https://docs.google.com/spreadsheets/d/1GHN8-uX4RdkMz0IIvTTxB0TjAKtUMSdCTFHqXNgHVm4/edit?usp=sharing
Thanks in Advance!
You can use =FILTER($E3:$H3,$E3:$H3-Max($E3:$H3),"") to create an array of all loans with the highest interest rates. I suppose it ought to be possible to create a matching array of loan sizes and then extract the highest of these. However, the task appears intimidating.
Meanwhile I wonder if this much simpler approach will allow you to get to your desired result using simple IF functions.
=IF(A3=MAX($A3:$D3),"Hi loan","Low loan") & " / " & IF(E3=MAX($E3:$H3),"Hi Rate","Low rate")
You chose "Active" and "Inactive". I chose "Hi" and "Low". Both of these are translations of True and False and may be used in conditional formatting, for example, where you simply highlight loans with the highest interest rate in one colour, and choose a different colour where the highest rate is applied to the largest loan. The simple logic I express here can be expressed in words, too. It's just a matter of interpreting the two results provided by my formula to best suit your needs.
I am trying to create a formula in Excel that solves for the base number of units needed on a monthly interval with an annual growth escalator that matches in whole units the total I'm starting with. I can't from a practical standpoint have fractions.
This is an example of the formula x is number of monthly units, y is the total number of units and the desired annual growth rate is 20%. Here is the algebra butin practice only one variable will need to be solved for (x): y= 12x + (1.2x)*12+(1.2^2)*x*12+(1.2^3)*x*12. I get close using the round function but always end up a few short of the total desired due. Is there a way to add on the difference at the end formulaically?
ROUND(20000/(12+(12*(1+20%))+12*(1+20%)^2+12*(1+20%)^3),0)
I'm extremely close but I need to make sure the total by month matches the total desired.
I want to be able to mathematically calculate the loan amount using the following fields and rules:
Fields:
SalesPrice (named range),
Liens (named range),
PropertyType (named range),
LTV (named range) – formula used in that cell =LoanAmount/SalesPrice,
CLTV (named range) – formula used in that cell =(LoanAmount-Liens)/SalesPrice),
Rules:
If PropertyType=”Condo” Max LTV=95% otherwise 97%,
Max CLTV for everything is 105%.
I need to calculate the named range loanamount based on the 2 rules, the issue is that the liens can change based on user input and I am having trouble figuring out the formula or the math to use to calculate the loanamount field while still adhering to the 2 rules. I was using this long IF statement because there was only 2 lien size possibilities at the time but now it can be any number. The loanprogram criteria in the formula was what was determining the amount of the lien but I don’t need that criteria if I can figure out how to calculate the loan amount with any amount in the cell named liens. The SalesPrice criteria is there because for some reasons those values where breaking points when calculating based on the amount in the liens named range, which I also may not need if I can figure out the correct formula or VBA code to use.
I feel like this should be easy but cannot figure it out and don’t know if anyone will understand my problem or even if this should be a formula or something I should do in VBA.
This is the logic I need to follow: loan amount = (sales price X 105%) minus liens
but if PropertyType is condo the loan amount must be adjusted to not exceed 95% of the SalesPrice and also must be adjusted so that the CLTV (combined loan to value which is (loan amount plus liens) divided by SalesPrice)) to not exceed 105% of the SalesPrice
if PropertyType is not a condo the loan amount must be adjusted to not exceed 97% of the SalesPrice minus the liens and also must be adjusted so that the CLTV (combined loan to value which is (loan amount plus liens) divided by SalesPrice)) to not exceed 105% of the SalesPrice
=IF(AND(PropertyType="Condo",LoanProgram="HFA Bond Miami",SalesPrice<150000),((SalesPrice*105%)+Liens),IF(AND(PropertyType="Condo",LoanProgram="HFA Bond Miami",SalesPrice>150000),(SalesPrice*95%),IF(AND(PropertyType="SFR",LoanProgram="HFA Bond Miami",SalesPrice<187500),((SalesPrice*105%)+Liens),IF(AND(PropertyType="Townhouse",LoanProgram="HFA Bond Miami",SalesPrice<187500),((SalesPrice*105%)+Liens),IF(AND(PropertyType="Condo",LoanProgram="HFA Bond Broward",SalesPrice<93700),((SalesPrice*105%)+Liens),IF(AND(PropertyType="Condo",LoanProgram="HFA Bond Broward",SalesPrice>93700),(SalesPrice*95%),IF(AND(PropertyType="SFR",LoanProgram="HFA Bond Broward",SalesPrice<93700),((SalesPrice*105%)+Liens),IF(AND(PropertyType="Townhouse",LoanProgram="HFA Bond Broward",SalesPrice<93700),((SalesPrice*105%)+Liens),(SalesPrice*97%)))))))))
Although I cannot explain it but making the lien negative just messes things up even though I have the math to correct it, it just doesn't flow logically so I went to an old spreadsheet that I had this formula working and saw that liens was also positive their. So I wrote this formula and it works like a charm:
=IF(AND(OR(PropertyType="SFR",PropertyType="Townhouse"),(LoanAmount/SalesPrice)>97%),SalesPrice*97%,IF(AND(PropertyType="Condo",(LoanAmount/SalesPrice)>95%),SalesPrice*95%,((SalesPrice*105%)-Liens)))
So for example: You want to receive $X in today's dollars at the beginning of each year for Z# of years. Assuming a 3% constant inflation rate and a 7% compounded annual rate of return.
I know the formula to calculate the inflation adjusted returns; for the rate of return you have to use this formula:
[[(1+investment return)/(1+inflation rate)]-1]*100 OR in this instance
[(1.07/1.03)-1]*100
then you need to use the Present Value formula to calculate the rest PV(rate,nper,pmt,[fv],[type]) to find out how much $ is needed to sustain $X adjusted for inflation for Z# years. So here's my formula that I'm using:
=PV((((((1+E16)/(1+B15))-1)*100)),H14,-O7,,1)
Where E16 is my Annual Return (7%), B15 is my Inflation Rate (3), H14 is the number of years I need the payment (30), -O7 is my payment amount (made negative to give a positive #)($127,621.98), future value [fv] is left blank as is unnecessary, and Type is 1 so I calculate for receiving the payment at the beginning of the year.
What all this "should" return is $2,325,327.2044 according to my financial calculator, however Excel is giving me $160,484.6347.
What am I doing wrong here?
The syntax for PV includes:
Rate Required. The interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%. You would enter 10%/12, or 0.83%, or 0.0083, into the formula as the rate.
So don't factor by *100.
Many parentheses serve no purpose as the formula below is sufficient:
=PV((1+E16)/(1+B15)-1,H14,-O7,,1)
The Excel (2013) result to four DP is: $2,325,327.2045.
i have a yearly unit that i divide by a percentage to give me the monthly equivalent. I have a growth formula that increases the monthly unit to a yearly one month by month, how can i create a formula that give me the actual unit per month not the growth. Example
4
5
7
8 this is the growth but i what 5-4=1....
7-5=2...
=ROUND(Q59*$B$49,0) is how i get 4..5..6..7..8 how do i get to 1..2..1 in one formula . Thanks
If I'm understanding you correctly you are looking for the incremental increase rather than the total increase. Without more information it is difficult to understand exactly what your looking for, but your formula sounds like it is multiplying over 100%. You want to multiply by the percentage of increase. so essentially what your doing is adding the beginning balance back in. Change your percentage in the cell to the increase and not the increase plus beginning.