How to Calculate EMI in Excel Sheet with Formula

If you are trying to figure out how to calculate EMI in Excel for a personal loan, you’ve come to the right place. This blog explains the EMI calculation formula in excel step-by-step, so you can know exactly how much you’ll need to pay every month. Calculating your EMI before applying for a loan helps you plan your budget, compare lenders and choose the right tenure.  

Here, you’ll learn the excel formula to calculate EMI, see a sample calculation with dummy values, and get practical tips to avoid common mistakes. 

EMI Formula in Excel to Calculate Personal Loan EMIs 

You can calculate your EMI in Excel using the PMT function. 

Formula: 

 =PMT (RATE, NPER, PV, FV, TYPE) 

Here’s what each parameter means: 

• RATE: Monthly interest rate (annual interest ÷ 12) 

• NPER: Total number of instalments (loan tenure in months) 

• PV (Present Value): Principal or the loan amount 

• FV (Future Value): Remaining balance after last payment (usually 0 for personal loans) 

• TYPE: Payment timing — use 0 if EMI is paid at the end of the month, 1 if paid at the start 

Step-by-Step Example of EMI Calculation in Excel 

Here’s an example using sample values to demonstrate the emi calculation formula in excel: 

• Loan Amount (PV): ₹5,00,000 

• Annual Interest Rate: 12% (monthly RATE = 0.12 ÷ 12 = 0.01) 

• Tenure (NPER): 36 months 

• Future Value (FV): 0 

• TYPE: 0 (end-of-month payments) 

Excel Formula: 

 =PMT(0.01, 36, -500000, 0, 0) 

Result: ₹16,607 approx. per month 
Tip: Enter the loan amount (PV) as a negative value to display EMI as a positive number. 

Important Factors to Consider When Using the EMI Formula in Excel 

Before you calculate EMIs, keep these points in mind: 

• Interest Rate: Higher rates increase EMI 

• Repayment Tenure: Longer tenure reduces EMI but increases total interest cost 

• CIBIL Score: Better scores can get you lower interest rates, reducing EMIs 

• Down Payment: Larger down payment = smaller loan = lower EMI 

• Payment Timing: Paying at the beginning of the month (TYPE=1) saves some interest 

Tips for Accurately Calculating Your Monthly Obligations in Excel 

To get accurate results from the excel formula to calculate EMI, follow these steps: 

• Convert annual interest rate to monthly rate (divide by 12) 

• Keep FV = 0 for personal loan EMI calculation 

• Enter tenure in months (e.g., 3 years = 36) 

• Double-check your inputs to avoid wrong EMI results 

• Update the sheet if your interest rate changes during the tenure 

• Cross-check results with an online EMI calculator 

Practical Tips and Rules for Calculating Personal Loan EMIs in Excel 

1. Dos: 

• Use the PMT function correctly for accurate results 

• Enter principal amount as a negative value 

• Re-check your sheet regularly to keep it updated 
   

2. Don’ts: 

• Don’t use annual interest rate directly without converting to monthly 

• Don’t skip verifying results with online calculators 

• Don’t enter tenure in years; always use months 

Why Should You Calculate Your EMIs in Advance? 

Planning your EMIs in advance helps you stay financially prepared. 

• Better Budgeting: Borrow only what you can comfortably repay 

• Compare Lenders: Choose the best interest rate to save money 

• Reduce Rejection Chances: Apply for the right amount based on eligibility 

• Optimise Down Payment: Paying a higher down payment reduces EMI 

• Repayment Confidence: Select a tenure that matches your monthly cash flow 

Stay Safe from Loan Scams 

When exploring online loans, be careful about scams. Genuine lenders will never ask for upfront fees or sensitive details like OTPs. Always check if the lender is RBI-registered or a partner NBFC. Fibe is a trusted digital lending platform offering personal loans of up to ₹5 lakhs with minimal documentation and quick approval. 

Using Excel to calculate EMI gives you clarity and control. For faster results, you can also use Fibe’s instant EMI calculator to compare outcomes and apply for a personal loan online. 

FAQs on How to Calculate EMI in Excel 

How do I create an EMI calculator in Excel? 

 Enter the loan amount, interest rate (monthly), tenure in separate cells and use the PMT function to compute the EMI automatically. 

How can I ensure the accuracy of EMI calculations using Excel? 

 Double-check your inputs, use the PMT function correctly and compare results with online calculators for validation.