Method 4 – Use a Generic Formula to Calculate a Loan Payment in Excel Steps: SelectC10,where you want to keep theTotal Payment. Use the formula given below in theC10cell. =C5*(1+C7*(C8*12)) Formula Breakdown In this formula, we have converted years to months by multiplying12withC8 ...
Formula to calculate EMIs using MS Excel Calculating EMI is easy with the following formula using MS Excel: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]. Here, P is the original loan amount R is the annual interest rate and N is the number of monthly instalmen...
Here, we have our loan term in years in cell B2, monthly payment in cell B3 (entered as a negative number), and loan amount in cell B4. You would enter the following formula in cell B5 to calculate your interest rate: =RATE(B2*12,E3,E4)*12 Now you can see the interest rate yo...
Formula Explanation Here, G4:G8 is the range where all 5 years’ interest amounts are stored. After pressing ENTER, the total interest is returned. Read More: How to Calculate Interest on a Loan in Excel Method 2 – Using a Known EMI Value We can calculate the total home loan interes...
Below is the formula that will calculate the loan payment amount using the PMT function: =PMT(C3,C4,C2) Note that the loan payment is negative as it’s a cash outflow. If you want it to be positive, make the loan amount negative. Also, remember that the interest rate remains constant...
and loan calculators, our Simple Loan Calculator uses just the basic built-infinancial formulasto calculate either the payment (using the PMT formula), the interest rate (using the RATE formula), the loan amount (using the PV formula), or the number of payments (using the NPER formula). ...
Once you add your data to the Excel formula, your calculation should look like this: NPER(25%/12,-120,2000). When you use the formula to calculate loan payments, the answer comes to 20.68. This answer means you would know that your number of payments would be 20 to pay off the insta...
principal payment slowly reduces the loan balance to 0. If extra principal payments are made, the remaining balance will reduce more quickly than the loan period. The lender, usually Banks or other financial institutions, takes three elements and uses them in a formula to calculate the monthly ...
If you would like to see the total amount that will be repaid, over the duration of the loan, use the following formula in cell C8. =C6*C3 This formula multiplies:monthly payment in cell C6 by number of payments in cell C3 Example 2: Calculate Payment on Canadian Mortgage...
The second column is the monthly amount we need to pay each month—which is constant over the entire loan schedule. To calculate the amount, insert the following formula in the cell of our first period: =-PMT(TP;B4*12;B3) =-PMT((1+3,10%)^(1/12)-1;10*12;120000) The third col...