# Alternative to PMT using 360 day basis?

#### Ludovico

##### Board Regular
I'm trying to build a very detailed amortization schedule worksheet. Most loans in my institution are based on an actual/360 interest basis; the PMT function seems to be based on actual/365. Anybody know of a fix. I want many users across our network to be able to use the spreadsheet, so a solution invloving an add-in to each users's pc will probably not be practical.
Thanks,
Ludovico

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...the PMT function seems to be based on actual/365.

Not sure what you mean; the PMT function is N periods. Can you give an example?

Sure.
What I mean is that if I use PMT to get the monthly payment on a \$5,000,000 12 month loan at 7% (Rate =.07/12, NPER = 12, PV = 5000000), the function tells me the monthly payment will be \$432,633.73. If I do an amortization table using that payment and accruing interest on an actual/365 day basis, the final payment necessary to payoff the loan in month 12 is very close to the payment calculated by PMT. If I accrue interest using actual/360 (which most banks use) the final payment is off by quite a bit. I was hoping to be able to set up my amortization table to be able to select between the two.
Hope this helps.
Ludovico.

Is 360 the same as 11.836 periods (360/365 * 12)?

In that case, PMT returns \$432,858.
Monthly interest would be Balance * .07/11.836.

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