CHARI said:
Is there a formula to calculate the term in months
without using a termplete?
Well, the simple answer is: use NPER(). But that comes with lots of
caveats. it would be helpful to know what data you have and why you are
trying to compute the loan term in months.
Consider a loan of $10,000 at 5% with monthly payments of $450. Ostensibly,
you would compute the number of months with:
=nper(5%/12,450,-10000)
Two things to note: (a) the "rate" argument is __monthly__ rate; and (b)
the "pmt" and "pv" arguments must have opposite signs (one negative, one
positive).
But note that with those numbers, NPER returns about 23.37, not an integer
number of months.
Ostensibly, you might use INT, ROUNDUP, or ROUND to compute the integral
number of months. But which you should use depends on lender policy. And in
either case, it is likely to change the amount of the last payment.
