LOAN REPAYMENT

Loan Repayment



Loan Repayment

The Excel Pmt Function To Calculate Fixed Monthly Repayment Amount

This function calculates the regular repayment amount for a capital loan taken out over a certain numbers of years at a fixed interest rate. The parts of the PMT function are =PMT(Interest, periods, Amount). Suppose we enter the annual interest rate as 4% in cell D2, the term in years as 25 in cell D3, and the loan amount 100,000 in cell D4. We want to calculate the monthly repayment amount in cell D5.

Because we want to work out the monthly repayments, we need to enter the ...