# What is the formula to calculate interest on a loan in Excel?

=PMT(17%/12,2*12,5400)

1. The rate argument is the interest rate per period for the loan. For example, in this formula the 17% annual interest rate is divided by 12, the number of months in a year.
2. The NPER argument of 2*12 is the total number of payment periods for the loan.
3. The PV or present value argument is 5400.

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## Besides, how do I calculate loan payments in Excel?

In this regard, how do I calculate principal and interest on a loan in Excel?

## In this manner, how do I create a loan in Excel?

Open a blank Excel spreadsheet file. Write “Loan Amount:” in cell A1 (omit the quotation marks here and throughout), “Interest Rate:” in cell A2, “# of Months:” in cell A3 and “Monthly Payment:” in cell A4. Highlight and bold the text to make them stand out.

## How do you calculate monthly interest on a loan?

How is Interest Calculated on Personal Loans?

1. EMI = equated monthly instalments.
2. P = the principal amount borrowed.
3. R = loan interest rate (monthly basis) = annual interest rate/12.
4. N = loan tenure (in months)

## How do you calculate principal and interest on a loan?

Calculation

1. Divide your interest rate by the number of payments you’ll make that year. …
2. Multiply that number by your remaining loan balance to find out how much you’ll pay in interest that month. …
3. Subtract that interest from your fixed monthly payment to see how much in principal you will pay in the first month.

## What is PMT Excel?

PMT, one of the financial functions, calculates the payment for a loan based on constant payments and a constant interest rate. Use the Excel Formula Coach to figure out a monthly loan payment. At the same time, you’ll learn how to use the PMT function in a formula.

## What is the formula to calculate interest on a loan?

You can calculate Interest on your loans and investments by using the following formula for calculating simple interest: Simple Interest= P x R x T รท 100, where P = Principal, R = Rate of Interest and T = Time Period of the Loan/Deposit in years.