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Loans have four primary components: the amount, the interest rate, the number of periodic payments (the loan term) and a payment amount per period. You can use the PMT function to get the payment when you have the other 3 components. For this example, we want to find the payment for a $5000 loan with a 4.5% interest rate, and a term of 60 months.
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To calculate a monthly payment for a loan using Excel, you will use a built-in tool called "PMT, " or the "Payment" function.Â . The PMT function works the same across all versions of Excel, so the instructions below will work no matter if you are running an old or brand-new edition of the program.
Calculator Use. Use this loan calculator to determine your monthly payment, interest rate, number of months or principal amount on a loan. Find your ideal payment by changing loan amount, interest rate and term and seeing the effect on payment amount.
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