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How to calculate monthly payment( installment) for a Loan Amount in Excel


In Excel there is built in function PMT() to calculate the payment for a loan amount.

For example - our loan amount is $50000 ,interest rate is 10.5% and period is 48 months

*Get PMT function from Financial formula's
*Enter the data properly on fiels

Rate is the interest rate which is divided by 12 (to convert to monthly)
As per our example 10.5% divided by 12 (Cell reference can select instead of direct value)

Nper is the terms or number of months(48) (Cell reference can select instead of direct value)

Pv is the present value or Loan Amount ($50000)  (Cell reference can select instead of direct value)



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