Opinions expressed here are author's alone, not those of the bank, credit card issuer, or other advertiser, and have not been reviewed, approved or otherwise endorsed by the advertiser. DoughRoller does not include all companies or all offers available in the marketplace.Įditorial Disclosure: This content is not provided or commissioned by the bank, credit card issuer, or other advertiser. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Changing the formula to reflect these loan terms results in a monthly payment of $355.Īdvertiser Disclosure: The offers that appear on this site are from companies from which DoughRoller receives compensation. For example, let’s assume we want a $10,000 loan over a 30-month period instead of 60 months. You can also change the interest rate and loan term. For example, if we change the loan amount to $10,000, Excel immediately changes the payment to $188. To see how the payment would change with different assumptions, simply change some or all of the numbers in the formula. If you prefer to see this as a positive number, you can enter the loan amount as a negative number in the formula (e.g., -20000). Note that the number is negative because it represents payments you’ll be making on the loan. In the cell, you’ll find your monthly payment. In this example, we’ll assume a $20,000 loan.Ĭlose the parenthesis to end the function and hit enter. Lastly, we’ll enter the amount of the loan. For a five-year loan, for example, you would enter 60. Next, we’ll enter the number of months on the loan.
For example, a 5% rate would look like this.
The easiest way to do that is to enter the interest rate as a decimal divided by 12. Since we’re going to calculate the monthly payment, we want the monthly interest rate. Then, we’re going to enter three numbers in the parenthesis. In this case, we’re going to use the Payment function, which is abbreviated as PMT. In the function box, type the equal sign (=) and the function. That’s actually what I’ve used to take these screenshots.) Just open up a spreadsheet in Drive and the functions are all the same. (By the way, if you don’t have Excel, you can do this same thing for free in Google Drive.
In Excel, you’ll see at the top, above all the cells, the function bar. But, frankly, I prefer to use Excel because it’s super easy and you can quickly change the interest rate, loan amount or length of the loan to see how the monthly payment will change.
There are of course online calculators that you can use to find the monthly payment.
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