Numbers/Excel: How can I calculate this as a percentage?

Discussion in 'Mac Apps and Mac App Store' started by tekno, Aug 9, 2012.

  1. tekno macrumors 6502a

    Joined:
    Oct 15, 2011
    #1
    When I bought my house, I contributed £82,500 and my parents contributed £36,150 (the rest was obviously mortgage).

    Now I'm selling I want my parents to get their 36k back and a percentage of the profits - how can I figure out what percentage of the profit they deserve??

    Thanks!
     
  2. Macman45 macrumors G5

    Macman45

    Joined:
    Jul 29, 2011
    Location:
    Somewhere Back In The Long Ago
    #2
    This isn't as easy as a simple formula....It's going to depend on the interest, the rise in property values (or decline) etc.

    Once you have all the figures for the parameters, it's an easy job to work it out, but you need the figures first.
     
  3. tekno thread starter macrumors 6502a

    Joined:
    Oct 15, 2011
    #3
    Thanks for the reply. I've got those figures - once sold, fees paid, mortgage paid-off etc., I'll have around £35,000 left over and I want to work out how much I should give my parents.

    For example, if I had put in £75k and my parents £25k, I could easily see they should get 25% of the £35k profit - but the actual figures are a little more confusing!
     
  4. CylonGlitch macrumors 68030

    CylonGlitch

    Joined:
    Jul 7, 2009
    Location:
    SoCal
    #4
    <Contributed Amount> / <Original House Price> = X / 100

    Say the house was worth £200,000 initially.

    £36,150 / £200,000 = X / 100
    X = (36,150 / 200,000) * 100 = 18.075% investment

    Now, figure the current price and how much they should get back using the same type of formula.

    <Return Amount> / <Current House Price> = <percentage invested> / 100

    or from the above example, assume the house is worth £300,000 today :

    <Return Amount> / £300,000 = 18.075 / 100

    <Return Amount> = (18.075 * 300,000) / 100 = £54,225

    This only takes in the values you put into it. In your case, your initial house price was the total you put down and your parents put down (£82,500 + £36,150 = £118,650). The current house price is the amount that you'll be getting back AFTER the remaining mortgage is paid off. If say your house is worth £500,000, but you still owe £350,000 mortgage, you'll only be getting £150,000 back and thus that is the price listed as <Current House Price> not the street value.

    This assumes that you paid the mortgage the whole time without any help. If they contributed to the monthly mortgage, you'd have to figure out how much of that they invested in.

    Let me know if there is anything more you could use help with there. It isn't that hard, unless there are other things that come up. I'd recommend being completely honest with them and showing them all the paperwork; don't want a few dollars hurting family relationships.
     
  5. balamw Moderator

    balamw

    Staff Member

    Joined:
    Aug 16, 2005
    Location:
    New England
    #5
    It's the same basic idea:

    82,500 + 36,150 = 118,650

    36,150/118,650 = 0.3046 = 30.5%

    (EDIT: That doesn't cover any $$$ you put in via the mortgage CylonGlitch's post is far more thorough.)

    B
     
  6. CylonGlitch macrumors 68030

    CylonGlitch

    Joined:
    Jul 7, 2009
    Location:
    SoCal
    #6
    I guess I should have stated that his original house price should be the total amount put down, not the street price. Thus he should be using the £118,650 for that part of the calculation, which results in the 30.5% you listed.
     
  7. Crazy Badger macrumors 65816

    Crazy Badger

    Joined:
    Apr 1, 2008
    Location:
    Scotland
    #7
    If you're just wanted to give you parents a percentage of the £35k profit based on you initial investment it's pretty straight forward.

    Total Invested = £82,500 (You) + £36,150 (Parents) = £118,650

    Percentage invested by Parents = (£36,150/£118,650)*100 = 30.46%

    30.46% of £35k profit is £10,611 :D
     
  8. balamw Moderator

    balamw

    Staff Member

    Joined:
    Aug 16, 2005
    Location:
    New England
    #8
    I think your idea was right, though I'd probably do it something like this:

    The total principal paid of the mortgage (*) = (parents contribution + down payment + mortgage payments). That number should be relatively easy to get since it's (the original value of the mortgage) - (the amount required to pay it off).

    Parents share would then be (parents contribution)/(total principal paid on mortgage).

    This take into account the extra $$$ the child put into the house over its lifetime.

    (*) This is the basis value of the house not owned by the bank.

    B
     
  9. tekno thread starter macrumors 6502a

    Joined:
    Oct 15, 2011
    #9
    I wasn't expecting such thorough replies - that's a great help. Thanks all.
     

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