Calculating The Payment of A Loan

When you will take a loan from bank maybe you want to calculate the monthly payment by yourself. Unfortunely, that's not an easy. But don't worry about it, Microsoft Excel has a function to calculate it easily.

Use the PMT function. PMT function has a syntax like this =PMT(rate,nper,pv,fv,type).

• rate : the interest rate per year
  
• nper : your total loan
• pv : the present value
• fv: The future value. This is the amount you want after the last payment is made. If it is assumed to 0 if it ommited.
• type: A number that indicates when payments are due. If you fill it with 0 or omitted, so it will indicates the end of the period, and 1 indicates the beginning of the period.
  

OK, we will try it now, try make data such as in my picture that I attached in this article. For example type the interest in cell B1, number of periods in months in cell B2, amount of loan in cell B3, type in cell B5 =PMT(B1/12;B2;B3) and then press Enter. Then your payment monthly will displayed in cell B5. The result is in negative value and if you want to make it in positive value just multiply it with -1 number or you can mix it with the formula like this : =PMT(B1/12;B2;B3) * -1.