For example, refer back to the example for Option A. Use this option if you want to pay off your loan early by making extra payments. Option D: Solve for the Term using NPER() However, this option may be useful for academic purposes. It isn't as common to solve for the interest rate because you may not have any control over what your interest rate can be (other than shopping around for the best one).
Option C: Solve for the Interest Rate using RATE() Keep in mind that there may be other fees in addition to standard loan payment (principal+interest), such as insurance, taxes, etc.įor example, with a $250 monthly payment, if you got a 5-year loan with a 6% interest rate, the loan amount is calculated to be $12,931.39. Use this option when you know how much you can afford to pay each month and want to find out how large of a loan you might get. Option B: Solve for the Loan Amount using PV()
The total interest paid over the life of the loan is calculated to be $3,034.15. For example, a 5-year, $15,000 loan at 7.5% interest results in a monthly payment of $300.57. Use this option when you know how much you need to borrow and want to find out how the interest rate or term affects your payment. Option A: Solve for the Loan Payment using PMT() If you entered your current balance in the Loan Amount, then for the Term enter the number of years you have left until your loan is paid off. Auto loans are usually between 2 and 5 years. Term of Loan (in Years): Mortgage loans usually have 15 or 30-year terms.Payment (Per Period): This is the amount that is paid each period, including both principal and interest (PI).Annual Interest Rate: This calculator assumes a fixed interest rate, and the interest is compounded each period.You can also enter your current balance, if you also adjust the Term of Loan to be the number of years left to pay off the loan. Loan Amount: This is the amount that you have borrowed.Enter 12 for Monthly, 52 for Weekly, 1 for Annual etc.
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Descriptions for each of the fields are provided below, as well as examples for how to use each of the options. This calculator demonstrates 4 different types of loan calculations. How to Use the Loan Calculator Spreadsheet This loan calculator uses the PMT, PV, RATE, and NPER formulas to calculate the Payment, Loan Amount, Annual Interest, or Term Length for a fixed-rate loan.
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