Early loan payment using PPMT & IPMT

Hi all,

I am trying to create multiple loan schedules that have the ability to reflect an early paydown. I have a Principal Payment Schedule (using the PPMT function) and an Interest Payment Schedule (using the IPMT function). If I am able to pay off 50% of the outstanding principal in Month 24 of a 60 month loan, I want the principal and interest payments to be adjusted for months 25-60. If I am able to pay down 100% of the interest in Month 30, then there shouldn't be any more payments after Month 30.

Attached is an example of one of the principal payment schedules. On line 4 there is an example of the loan paydowns I would like to use and have the schedule adjust. In this example, the loan is being paid off in month 32.

Thanks for any help!

Attachment 289681

Pauley,

Thanks for the response. I believe that will fix the issue I was having.

Can't give you a definitive answer as to if this is how it is usually handled in China. We are currently negotiating terms and will let you know how it ends up.