Forum Discussion
loan Calculation
I want to calculate loan without interest if I know what the monthly payment, term, and interest rate is. How can this be done with Excel formulae?
What does "loan without interest" mean if you know the "interest rate"?
I suspect you mean simply "the amount of the loan".
If the payment is $1000 for 60 months (5 years) at an annual rate of 4%, the amount of the loan is:
=PV(4%/12, 60, -1000)
3 Replies
Hey Mooo3
To calculate a loan without interest using Excel, you can use the PMT function. The formula is: =PMT(rate, nper, pv), where 'rate' is the interest rate per period, 'nper' is the number of periods, and 'pv' is the present value or loan amount.
For example, if you know the monthly payment, term, and interest rate, you can use the formula like this: =PMT(interest rate/12, term in months, -loan amount). Alternatively, you can use online loan calculators like the https://loanexplained.com/navy-federal-auto-loan-calculator/ for quick calculations.
What does "loan without interest" mean if you know the "interest rate"?
I suspect you mean simply "the amount of the loan".
If the payment is $1000 for 60 months (5 years) at an annual rate of 4%, the amount of the loan is:
=PV(4%/12, 60, -1000)
