But you cannot simply divide P by N to get your monthly payment because you also need to pay interest on the loan.
So what is going here? Basically, you borrow some amount P, which you need to repay, and you will make payments for N number of months. N = number of months of amortization, determined by length in years of loan J = monthly interest annual interest divided by 100, then divided by 12 Here is an example (courtesy of, which offers its material under a Creative Commons license), using loan payments: The general form of such a function ties all of these together in a relationship that lets you specify all but one of them and solve for the remaining one. But if you take the time to understand what these functions are doing you can often use them in other ways.Īs we pointed out, all functions in Calc take arguments and in this case as you might expect the arguments would have to do with interest rates, principle amounts, time periods, and payment amounts. The thing you need to bear in mind about these is that they are all oriented to doing financial analysis on investments. So it should not come as great surprise that there are many great financial functions in Calc. And the reason for that was that you could do sophisticated financial analysis with spreadsheets. As we discussed back when we first looked at spreadsheets, they were the killer app that lead to wide-spread adoption of PCs in companies.
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