How to Easily Calculate Monthly Payments in Excel

Learn the simple formula to calculate monthly payments for loans using Excel formulas.

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Calculate Monthly Amount in Excel: Use the formula `=PMT(rate/12, term*12, principal)` in a cell. Replace `rate` with the annual interest rate, `term` with the loan period in years, and `principal` with the loan amount. This will compute your monthly payment for a loan.

FAQs & Answers

  1. What is the PMT function in Excel? The PMT function calculates the monthly payment for a loan based on constant payments and a constant interest rate.
  2. How do I input the PMT formula in Excel? To input the PMT formula, type `=PMT(rate/12, term*12, principal)` in a cell, adjusting the parameters accordingly.
  3. Can I calculate payments for different loan amounts? Yes, simply adjust the 'principal' value in the PMT formula to calculate payments for different loan amounts.

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