Practical Step2Step Examples
Click on the questionlines below to reveal the explanation.
Calculate Duration
Use Case: What's the duration of a mortgage (250,000.=) with yearly interest 2.25% and Monthly payment of &euro 1,000.= ?
Loan, YearInterest 2.25%, Present Value € 250,000=, MonthlyPeriod payment € 1,000=, Future Value € 0,=,
Steps:
 Set Calculate to No Calculation.
 Set P to Month.
 Set B to After.
 Set N to 1. This is a dummy value, because the value has to be larger than 0.
 Set I to 2.25.
 Set PV to 250000.
 Set PMT to 1000.
 Set FV to 0.
 Set Calculate to N  Duration.
Results in the value 28.03 shown in the Duration column under N.
Meaning: The duration of this loan will be 28 years and 11 days ( 0.03 * 365 ).
Calculate Interest Rate
Use Case: What's the yearly interest percentage of a 30 year mortgage (250,000.=) annuity?
Loan, Duration 30 Years, Present Value € 250,000=, MonthlyPeriod payment € 1,000=, Future Value € 0,=,
Steps:
 Set Calculate to No Calculation.
 Set P to Month.
 Set B to After.
 Set N to 30.
 Set PV to 250000.
 Set PMT to 1000.
 Set FV to 0.
 Set Calculate to I  Interest.
Results in the value 2.62 shown in the Interest column under I.
Meaning: The yearinterest is 2.62%.
Calculate Period Payment
Use Case: How many euros do you need to pay to get € 50,000. after 5 year?
Saving, Duration 5 Years, Year Interest 1.75%, Present Value € 0.=, Future Value € 50,000.=.
Steps:
 Set Calculate to No Calculation.
 Set P to Month.
 Set B to Before.
 Set N to 5.
 Set I to 1.75.
 Set PV to 0.
 Set PMT to 0.
 Set FV to 50000.
 Set Calculate to PMT  Period Payment.
Results in the value 797.14 shown in the Period Payment column under PMT.
Meaning: The monthly europayment is € 797.14.
See a test example with amortizarion
Use Case: Buying a house with a mortgage, how many do you pay on Interest, Balance and in total?
Mortgage € 250,000. for 30 Years, Monthly payment periods, Interest rate 1.89% per year.
Steps:
 Click on the following URL FinCalc.php?test.
Results in the calculation for a PMT (Payment Period) of € 908.35 per month.
Please note the amortization graph.
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