were going to show you how to calculate loan payments in Excel 2016.
To calculate loan payment, you will need a rate, the total number of payments, and the loan amount. These must all be of the same time period (months, years, and so on. In this example, everything should be in months because we are calculating the monthly payment. The number of payments (11 years originally) will be multiplied by 12 to convert the years to months. The annual rate will be dealt with later in this example.
To calculate loan payment, use the formula PMT. The first argument for the formula is a rate. Use the annual rate and divide it by 12 if you want everything in months. The next argument is the number of payments, and finally the present value of the loan amount that needs to be paid off. The [fv] argument stands for final value and is set to 0 by default. The [type] argument when set to 0, by default, pays at the end of the period while a value of 1 pays at the beginning of the period.
By default, this value will show up as a negative number. If you wish to remedy this, simply add a negative sign before the PMT formula Date: 2023-07-08
