How do I calculate the monthly payment on a loan in Excel?

How to calculate monthly payment on a loan in Excel

Use the PMT formula,=-PMT(C2/12,C3,C4),=PMT(Annual Interest Rate divided by 12 [months],number of payments,loan amount [amount borrowed]),Example illustrated below:,=PMT(.

05/12,48,10000),Comments:,5% divided 12 months equals the amount of interest per month,48 represents the numbers of months in a four-year loan (4 years x 12 months per year = 48 months),10,000 is the principle amount borrowed

Monthly interest rate calculator

Deposit amount - 5000000,Rate of interest - 8 percent per annum,Number of years - 7 years,There are two types of fixed deposits,The deposit for which interest is payable on quarterly basis.

This is by default,The deposit for which interest is compounded and net interest is paid at the time of maturity of the deposit,You are opting for the first option,You are willing to get the interest on monthly basis rather than quarterly basis,The quarterly interest will be 400000/4 = 100000,You expect that monthly interest will be 100000/3 = 33333,However, you will not get the amount as mentioned above,You are getting interest for first month two months earlier,You are getting interest for second month one month earlier,You are getting interest for third month at the appropriate time,Since you are getting interest in advance for the first month and second month, interest will be paid to you at discounted rate and the rate will not be 8 percent and it will be slightly lower than 8 percent and perhaps it may be 7.

97,It may be around Rs.

33000/-,This amount will be credited to your savings account each month

Loan calculator

Greetings!,When acquiring any kind of credit, the most important part to be aware of is the repayment or the payback of the loan.

This is where the Loan calculator comes in.

,A Loan calculator is readily available on the web, what you need to take note of is the following inputs:,The Loan amount.

,The Tenure for which the Loan is granted.

,The rate of interest applicable.

,For a personal loan, the rate of interest is applied at a monthly reducing basis.

,For a mortgage, the rate will be a floating or fixed.

,The chart after putting these inputs will show the monthly EMI to be paid & the details if the EMI: the interest & principal component.

,At the beginning of the tenure, the interest quotient will be greater than the principal,,at halfway a balance will be achieved.

,With the above details, you can work out;,A suitable EMI.

,A suitable tenure.

,At what stage would it be beneficial to pay back the loan.

,So check out the details & take the terms best suitable for your budget.

,Do upvote if the above information is of help.

,Regards,,Yamini Chhabra.