Published on: 14 September 2023
To calculate EMI in Microsoft Excel, it is essential that you know the correct formula to avoid any errors. An EMI or equated monthly instalment is the amount you repay the lender when you avail of a personal loan or any other form of credit. Calculating your EMIs beforehand helps you assess your repayment schedule and manage your finances better. After all, they dictate your overall borrowing costs throughout your loan tenure.
Most lenders offer online personal loan EMI calculators on their websites, so you can check them instantly with just a single click. But, if you prefer checking them manually, you can easily calculate EMI in Excel using the appropriate formula. Continue reading to understand how to calculate EMI in Excel and the right EMI formula in Excel.
Here is the EMI formula in Excel that can help you compute your EMIs accurately. Use the following PMT function in an Excel cell to get your personal loan EMI.
EMI of your personal loan = PMT(RATE,NPER,PV,FV,TYPE)
When using the formula to calculate EMI in Excel, remember that the FV you enter must be 0. Also, you can enter 0 in TYPE when you pay your instalment at the end of a month and 1 when you pay your instalment at the beginning of every month. Using the correct Excel function lets you compute accurate values, helping you easily evaluate your monthly obligations.
Also Read: Foreclosure charges on personal loan
Follow this step-by-step guide and evaluate your personal loan EMI:
Step 1: Download MS Excel on your PC/smartphone
Step 2: Open a new worksheet to calculate your personal loan EMI
Step 3: Provide loan details, such as interest rate, tenure and loan amount, in the designated cells
Step 4: Add the formula to calculate EMI in Excel, as mentioned before
That’s all. Now you can compute your monthly instalments hassle-free!
While you need to consider various pointers when using an EMI formula in Excel, know the factors affecting your personal loan EMI. This helps you tweak the variables until you arrive at a comfortable repayment schedule.
Your EMI is determined by various factors, such as:
Now that you are aware of some factors that can affect your EMIs, consider these points when calculating your EMI in Excel:
Using an EMI calculator in an Excel sheet is simple and easy once you know the right formula. This aids in effective financial management, helping you evaluate your monthly obligations well in advance.
While an EMI calculator in an Excel sheet helps compute your monthly instalments, rechecking the values using a personal loan EMI calculator is ideal. You can use the personal loan EMI calculator on Fibe before applying for a personal loan to check for accuracy. At Fibe, you can get up to ₹5 lakhs at interest rates starting at just 2% p.m. Download our Personal Loan App or register on our website to get started.
You can compute your personal loan EMI using the following formula:
EMI = [P x R x (1+R) ^N] / [(1+R) ^ N-1]
P = Principal amount
R = Interest rate
N = Loan tenure
It is easy to calculate EMI in Excel on simple interest using the PMT function. This financial function in Excel allows you to calculate your repayment amount based on a constant interest rate, loan amount and loan tenure. The formula for the same is:
SI = Principal X Interest Rate X Term (in years)
You can use the PMT function in Excel to calculate the monthly loan repayment amount. Simply enter the loan amount, loan tenure and interest rate to calculate your monthly EMI.
Category : Personal Loan
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