Finance
Work out how much you can borrow
=PV(B1/12,B2*12,-B3)How it works in Excel
- B1/12 is the monthly interest rate.
- B2*12 is the number of monthly payments.
- -B3 is the monthly payment.
- This is PMT in reverse.
- It also values any steady stream of future payments.
The idea in general
It asks: "What is a stream of future payments worth in one lump sum today?"
What I assumed
- The yearly rate is in B1, the years are in B2 and the monthly payment is in B3.
Check the result on your own data before relying on it.