What is EMI?
EMI stands for Equated Monthly Installment which is monthly payment for a loan we opted for. Most bank and financial organizations deals with EMI. If you take any loan from any financial organization then you have to repay the amount with some interested or 0% interest rate. Now you have to pay a small part of that amount monthly/periodically it is the EMI. here you will learn EMI calculation in Excel.
EMI calculation using excel
To calculate EMI in Excel spreadsheet we need PMT function where three variable are required. 1. rate of interest (rate), 2. number of periods (nper) 3. value of the loan or present value (pv).
The formula which you can use in excel is:
=PMT(rate,nper,pv).
Let us check an example of EMI calculation,
Rohan wants a loan where monthly rate is 7.5% ,time period is 5 years(5*12),loan amount is 700000,down payment is 50000
The number of periods represent the number of EMIs. =-PMT(D5/12,D6*12,D3-D4)
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