How to calculate EMI in Excel? Important points you need to know

  • Updated on: 22 Jan 2024
  • Published on: 14 Sep 2023
How to calculate EMI in Excel? Important points you need to know

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.

What is the correct EMI formula in excel to calculate Personal Loan EMIs?

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)


  • Rate indicates the interest rate of your personal loan on a monthly basis
  • NPER implies the maximum number of monthly instalments
  • PV means the present value of your loan amount
  • FV indicates the future value or a specific value that remains after you make the last payment
  • TYPE can be written as either 0 or 1

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

How to calculate EMI in excel for a 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!

What are the important factors to consider when using the EMI formula in excel?

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:

  • Interest rate: A higher interest rate translates to a higher EMI
  • Credit score: An optimal credit score can get you an instant loan at lower interest rates, which can reduce your EMIs
  • Repayment duration: A longer repayment window can lower your EMIs, while a shorter tenure increases your monthly instalments

Now that you are aware of some factors that can affect your EMIs, consider these points when calculating your EMI in Excel:

  1. Remember that the Excel formula always considers the monthly interest rate as input. Hence, convert the annual interest rate to a monthly rate by dividing it by 12.
  2. As personal loan interest rates do not remain constant, be sure to update your Excel formula accordingly.
  3. Double-check the values you enter in Excel. Even a small mistake can give you an incorrect value and affect your budget planning.

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.

FAQs on how to calculate EMI in excel

What is the personal loan EMI formula?

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 

How to calculate EMI in Excel for simple interest?

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)

What is the Excel formula for loan payment?

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.


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