how to calculate student loan repayments in excel

Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of the period.Īmount to save each month to have $50,000 at the end of 18 years. Monthly payment for a loan with terms specified as arguments in A2:A4. If you need to, you can adjust the column widths to see all the data. For formulas to show results, select them, press F2, and then press Enter. ExampleĬopy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. Tip To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.

If you make annual payments on the same loan, use 12 percent for rate and 4 for nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. Make sure that you are consistent about the units you use for specifying rate and nper. The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans. The number 0 (zero) or 1 and indicates when payments are due. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0. The future value, or a cash balance you want to attain after the last payment is made. P principal, meaning the amount of money borrowed. Follow the steps below for a detailed guide to using this formula, or refer to this quick explanation of each variable: M payment amount.

The present value, or the total amount that a series of future payments is worth now also known as the principal.įv Optional. The formula to use when calculating loan payments is M P ( J / (1 - (1 + J)-N)). The total number of payments for the loan. The PMT function syntax has the following arguments: Note: For a more complete description of the arguments in PMT, see the PV function.

How to calculate student loan repayments in excel