![]() Pmt: The monthly payment entered as a negative number.Rate: The annual interest rate (divided by 12 in the formula) or the flat rate.The syntax for the formula is NPER(rate, pmt, principal, future_value, type) with the first three arguments required. Here, we’ll use the NPER (number of periods) function in Excel. This lets you then adjust the rate or payment to increase or decrease the number of years for repayment. With the interest rate, payment amount, and loan amount, you can see the term in years. Maybe you’re trying to decide the best loan term for your situation. Tip: To calculate a monthly interest rate rather than yearly, remove the *12 from the end of the formula. Now you can see the interest rate you’re paying on the loan with a simple formula. You would enter the following formula in cell B5 to calculate your interest rate: 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. For an annuity, you can use the future_value and type arguments as described above and guess_rate for your estimated rate.Term: The term in years (multiplied by 12 in the formula) or the total number of payments.The syntax for the formula is RATE(term, pmt, principal, future_value, type, guess_rate) with the first three arguments required. All you need is your loan term, payment amount, principal, and Excel’s RATE function. If you have a current loan and are unsure of your annual interest rate, you can calculate it in just minutes. The formula result updates automatically. You can enter a lower interest rate or higher number of payments to get your payment amount where it needs to be. With the formula in place, you can then change the amounts you’ve entered to see how this affects the payment. You would enter the following formula in cell B5 to determine your payments: ![]() Here, we have our annual interest rate in cell B2, number of payments in cell B3, and loan amount in cell B4. For an annuity, you can use future_value for the value after the last payment is made and type for when the payment is due.Num_pay: The number of payments for the loan.Rate: The annual interest rate (divided by 12 in the formula).The syntax for the formula is PMT(rate, num_pay, principal, future_value, type) with the first three arguments required. ![]() For this, you’ll use the PMT function in Excel. You can then see if you should shop around for a better rate, need to reduce your loan amount, or should increase the number of payments. If you’ve been approved for a specific loan amount and interest rate, you can figure out your payments easily. Note: The formulas you see below do not take into account any additional fees or costs charged by your lender. You can then adjust those details to obtain different results and perform simple comparisons. With each function and its formula, you enter a few pieces of information to see the results. These let you see how much you can afford based on different amounts, rates, and timeframes. If you want to figure out the payment amounts, interest rate, or term for a loan, you can use a few handy Excel functions. Loan Payment, Interest, and Term Functions in Excel You’ll immediately see the amortization table update with all the details you need to keep up with your loan payments, principal, balance, interest, and cumulative interest. ![]()
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