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 ...
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...
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...
Assume the cell values are the terms from the main formula. Step 2: PressEnterto see the monthly payment for repaying the loan. The user has to pay this amount for three years to repay the loan. Method 2 – Applying PMT Function to Calculate Monthly Payment ...
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 installment loan. Your last payment will be 1.7 years from now as long you make those future payments on time. ...
Strategy:To calculate your car loan payment, you can use the PMT function. Follow these steps: 1. Enter price, term in months, and annual percentage rate in cells A1:B3. The PMT function has three required arguments: the interest rate, the number of payments in the loan, and the origina...
Understanding this aspect ensures precise EMI calculations aligned with your payment preferences. Calculating EMIs with the formula To calculate EMIs and interest for Personal Loans using Excel, input the loan amount, annual interest rate and loan tenure into separate cells. Then, use the formula =...
Rate: The annual interest rate (divided by 12 in the formula) Num_pay: The number of payments for the loan Principal: The total loan amount For an annuity, you can usefuture_valuefor the value after the last payment is made andtypefor when the payment is due. ...
Type: Use '0' or '1' to specify whether the payment is timed to occur at the beginning or end of the period PMT Function Formula In order to calculate your monthly loan payment, you’ll need to use the Excel loan payment formula for the PMT function: ...
The minus sign in front of PMT is necessary as the formula returns a negative number. The first three arguments are therate of the loan, the length of the loan (number of periods), and the principal borrowed. The last two arguments are optional; the residual value defaults to zero, and ...