Microsoft Excel Spreadsheet is a big breakthrough that could understand and calculate loan factors in the industry of Banks as well as all money market.
How to excel loan calculator save your money?
- Uses of Loan calculator
- How to calculate loan payments
- Calculate Loan Costs
- Excel loan calculator
- How to calculate interest rate on a loan
- What is amortization?
- How Amortization Works
- Loan Amortization Calculator
- Loan Amortization Schedule
- What is annual percentage rate (APR)?
- How to Calculate Annual Percentage Rate APR
- Annual percentage rate calculator (APR calculator)
Amazing loan calculator that Works quickly
Microsoft Excel loan calculator is a great way to calculate monthly loan cost, payoff, loan amortization, annual percentage rate, interest rate and related all other payments.
An advance is an agreement between a borrower and a moneylender in which the borrower gets cash which he is committed to pay back with interest to the lender called loan. When approved/received a home loan, mortgage loan, bad credit loan, personal loan need to calculate monthly installments, monthly/yearly rates, costs and Microsoft Excel loan calculator can be one of the best practice for all of this calculation.
Microsoft Excel spreadsheet is a powerful Microsoft windows program that has built in formula can calculate loan components or can be used as a loan calculator. Excel Spreadsheets one of the necessary part in the everyday business operations of small or big companies.
Excel spreadsheets prove to be useful when you have to store, control, calculate, manage or presents your work or business relevant data. On the off chance that you truly need to work with the stray pieces, you can ascertain advance parts with an Excel spreadsheet.
To understand of Excel Spreadsheets importance in your mind, when you are in the finance market, Microsoft Excel will be your easiest calculating tool in every calculation. Conduct of money related field Excel is a given thing. We can deal with a lot of financial parameter in Excel spreadsheet whether it's a loan or a payroll system or figure out monthly rate using loan calculator.
This allows you to easily run 'what if' scenarios by changing only one cell of the spreadsheet. The pages below are designed loan calculator to calculate loan costs, rates for mortgages loan, home loan, bad credit loan, personal loan but you can customize and adjust for other loan types as well.
Excel Formulas and its dynamic function used to calculates various loan programs.
Though the Excel Spreadsheet we will be covering loan calculator. This will give you quick result. Other hand using this article you can calculate loan costs, payments yourself using Excel formulas.
Uses of loan calculator
Getting a loan, lender will never give you all the figure of costs. You have to calculate and figure out all costs your own. A loan or mortgage loan plays a vital role to improve your business. That's why you will use loan calculator to calculate loan payments, costs and payoff schedules to figure out how much the loan really costs to borrow. So you have to need a loan calculator. In this circumstance Excel spreadsheet loan calculator is the tool can help you.
Calculate Loan Payments using loan calculator
As a smart business person getting a loan a common initial step is to calculate monthly loan installments, monthly rates, yearly rate etc. It will improve your business and its make impact in your revenue. Loan amount, interest rate and duration of pay back are the substance to calculate loan payment. Loan calculator calculates your loan costs or how much you have to pay back and you can know your total benefit or loss.
Monthly payment loan calculator (to calculate loan payment see amortization table)
Loan calculator to figure out monthly interest rate
Calculate loan costs using loan calculator
Borrowing money from any lender like bank or any other financial institution they will get back their loan with fees, interest and many other charges. You may know the loan cost but its demand to re-check and figure out all payments.
Sometimes low interest rate loan is not a perfect finance for improve a business. Annual percentage rate (APR) also play a role in any loan. Understanding APR, interest rate, fee will help you to get the best business and higher profit. A dependable guideline is that the less damage can overcome by high transaction fees that last a long time.
Excel mortgage loan calculator
Excel Spreadsheet has an extremely built in useful function for calculating your very own amortization schedule for a mortgage loan, home loan, personal loan or any kinds of loan. The functions are "PMT, PPMT, IPMT, DATE". All of these financial functions have been used to calculate the amortization schedule in the Excel mortgage loan calculator.
In the Excel spreadsheet, select a cell and enter the following formula:
=PMT(RATE,NPER,PV,FV,TYPE)
PMT formula calculates constant periodic payment for a loan with a constant interest rate. It's also can be used creating loan calculator.
- Rate defines periodical interest rate.
- NPER defines total number of periods (monthly installments/ loan tenure)
- PV defines principal loan amount
- FV defines optional logic that fixes up the future value of the loan or present cash balance after last installments. This value will be null.
- Type is an optional logic that calculates whether the installment is made at the end or start of the period. Its zero (numerical 0) count when the installment made end of the period and 1 count he installment made start of the period.
How to Calculate a Monthly Payment in Excel
=PMT(RATE,NPER,PV,FV,TYPE)
Let's to calculate a monthly pay back of a home loan, we will do this using Excel's PMT function. This is a simple Excel loan calculator.
The loan amount is $100000, term of the loan is 3 years and annual interest rate is 18%
Here,
- Interest rate = RATE
- Total Number of Periods = NPER
- Original loan amount (Present Value) = PV
- Future value = FV
- The installment is going to be paid on the first day or last day of the month, if first day TYPE = 1, if last day of the month TYPE = 0 Where,
- RATE = 18%/12
- (Because of our annual rate 14% to get monthly rate need to divided by 12 to get the monthly rate)
- NPER = 3 years = 36 months
- PV = 100000
- FV = 0
- TYPE = 0 So the monthly payment is
- =PMT (18%/12, 36, -100000, 0, 0)
- = 3615.24
Result. The monthly payment is $3615.24
Free download this loan calculator
Using this simple loan calculator any borrower can figure out his monthly installment for his borrowed amount.
Note:
We are calculating monthly payment and given rate is yearly rate. Getting monthly rate we are dividing yearly rate by 12 to get monthly rate and to get total months of repayment period multiplying total years by 12.
Putting Present value (PV) is negative value because this amount is owed amount.
Loan calculator for a mortgage loan
Calculate interest rate on a loan
Calculate monthly and yearly interest rate on a mortgage loan (mortgage calculator)
Example:
- =RATE (NPER,PMT,PV,FV,TYPE)
- = RATE(36,- 3615.24,100000,0,1)
- =2% (its monthly rate, now multiply by 12 for annual rate)
- = 2%*12
- =18%
This simple loan calculator which can calculate yearly and monthly interest rate can be used for home loan, personal loan and bad credit loan.
Free download this loan calculator
- What is amortization?
- How Amortization Works
- Loan Amortization Calculator
- Loan Amortization Schedule
What is Amortization?
Amortization is an easy way to calculation that refers to the evenly amortization depreciation out cost over a fixed timeframe. It also refers to the pay back in a fix time frame principal amount.
Loan amortization table have focus information that show you outstanding loan balance, principal payment, total repayment amount and interests. Loan calculator can be use for create loan amortization schedule.
How Amortization Works?
Loan amortization schedule have placed all information for a borrowed amount like principal amount, interest rate, monthly payment, starting balance and outstanding balance.
If you want to know how lender applying interest rate in a fixed time frame loan amount, amortization loan calculator is extremely useful for you. Other hand getting a mortgage loan, home loan, personal loan or bad credit loan amortization table find you out which lender will choose? Amortization also figures the amount you'd save by paying off debt early.
Loan Amortization Calculator
Using loan calculator to amortize a loan, below the procedure:
- 1. Starting loan balance or Present Value: $22,000
- 2. Figure out monthly payment.
- 3. Figure out monthly interest rate.
- 4. Figure out principle amount.
- 5. Calculate outstanding balance.
We figures out monthly payment using loan amortization calculator for home loan.
Let's think you are getting a home loan from a lender where your annual interest rate is 8%, loan term is 2 years and borrowed amount (present value) $5,000. We will figures out monthly payment.
In order to do this I'll use Microsoft Excel spreadsheet and the formula is PMT.
So open Microsoft Excel and put the figure in to a Excel loan calculator as below.
- Principle amount (pv) = 5000
- Annual interest rate (rate) = 8%
- Years (nper) = 2
- Future value (fv) = 0
- Type = 0
- = PMT (rate, nper, pv, fv, type)
- = $226.14
Your monthly payment is $226.14
Free download this loan calculator
Loan Amortization Schedule
Using Microsoft Excel loan calculator we will create a loan amortization schedule. Excel built in formula Like PMT, PPMT, IPMT used to create this loan calculator which can define loan amortization schedule.
Loan calculator for create amortization table.
Step 1. Creating loan amortization schedule open a Microsoft Excel spreadsheet create fields as below images. I will use the PMT function to define the monthly payment on a loan where annual interest rate is 4%, 2-year duration and present value (amount borrowed) of $22,000.
In order to do this I'll use Microsoft Excel loan calculator and the formula is PMT.
So open Microsoft Excel and put the figure as below.
- Principle amount (pv) = $22000
- Annual interest rate (rate) = 4%
- Years (nper) = 2
- Future value (fv) = 0
- Type = 0
- = PMT (rate, nper, pv, fv, type)
- = $955.35
Your monthly payment is $955.35
You can use this loan calculator to figure out any home loan, personal loan and bad credit loans monthly payment.
Free download this loan calculator
Step 2. Now we will calculate using Excel loan calculator to figure out principle amount and formula is PPMT.
This simple Excel loan calculator can be use to figure out any home loan, personal loan, bad credit loans monthly principle amount.
Free download this loan calculator
Step 3. Now loan calculator will calculate monthly interest, formula is IPMT.
Free download this loan calculator
This simple Excel loan calculator can be use to figure out any home loan, personal loan, bad credit loans monthly interest.
Free download this loan calculator
Step 4. Now loan calculator will be use for calculate monthly outstanding balance. Reduce the principle amount from present value. Keep your pointer in H16 cell. Sum up present value and principal amount. Here principle amount is an owed amount so it's shown negative amount. Press Enter to get, out standing balance.
Step5. Now select B16:H16 and drug down one row. Here second row showing second month's calculation. Correct second month outstanding balance. Select H17 cell. Sum up H16 and F17 (previous outstanding balance and current principal amount)
Last step. Select row B17:H17 and drug down to payment no. 24. Total time period is 24 months to pay off loan. You can now find how the principal amount increases and decreases interest rate. 24 month or last month of loan term outstanding balance is zero.
Free download this loan calculator
Annual Percentage Rate APR
- How to Calculate Annual Percentage Rate APR
- What is annual percentage rate (APR)?
What is Annual Percentage Rate APR?
A lender sells his loan products. Different loan products have different type of interest rate. These interest rates called loan cost. Excel loan calculator can calculate to figure out Annual percentage rate. APR define annual interest rates included all other fees like processing fees, loan broker fees, closing fees or any other charges applicable to get the loan. This means that APR and interest rate is not equal, usually APR is higher then interest rate.
Free download this loan calculator
How to Calculate Annual Percentage Rate APR using loan calculator?
We know APR is total interest rate included all charges, fees of a given loan.
Example:Loan calculator for calculate APR.
Annual percentage rate calculator (APR calculator)
Someone borrow $70000 for 10 years at 4% annual interest rate. In addition lender applied $2000 as loan closing fees. Now figure out the APR. Originally borrowed amount is $68000.
We will use Excel loan calculator to calculate monthly payment and then how to calculate apr on a loan. Excel has built in function PMT and RATE. In a loan calculator these two functions calculate APR
At first calculate PMT.
=PMT(RATE,NPER,PV,FV,TYPE)
- Where,
- RATE = 4%
- NPER = 10 Years
- PV = 70000
- FV=0
- TYPE=0
- Monthly payment = $708.72
Amazing loan calculator that Works quickly
Now figure out APR using RATE formula.
=RATE(NPER,PV,PMT,FV,TYPE)
- Where,
- NPER= 2years
- PV = 70000-2000=68000 (Actual Loan Amount)
- PMT= - 708.72
- FV = 0
- TYPE = 0
- RATE = 0.3851% *12 ( multiply by 12 for annual rate )
- RATE = 4.6212%
Free download this loan calculator
Final Word: Microsoft Excel is a strong calculating tool for finance, investment and banking. Thousand of loan calculator you will find in online but unerringly what you needed you will never get that moment. Using Excel loan calculator to calculate any lone term reduce your time and cost for any Home loan, Bad credit loan, Mortgage loan, Car loan or Personal loan.
