Excel Formulas to Calculate the Payment for a Loan ~ Useful Tricks!!
Tags: excelformula, excelformulas
Published: 2021-06-29 05:37:41

---
title: Excel Formulas to Calculate the Payment for a Loan ~ Useful Tricks!!
published: true
date: 2021-06-21 16:33:39 UTC
tags: ExcelFormula,Excelformulas
canonical_url: https://geekexcel.com/excel-formulas-to-calculate-the-payment-for-a-loan/
---

So far we have learned the formulas to **[calculate the original loan amount in Excel](https://geekexcel.com/excel-formulas-to-calculate-the-original-loan-amount/)**. In this post, we will show the formulas to **calculate the payment for a loan in Excel**. Let’s jump into this article!! Get an official version of ** MS Excel**  from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel ](https://www.microsoft.com/en-in/microsoft-365/excel)

[![Calculate the Payment for a Loan](https://geekexcel.com/wp-content/uploads/2021/06/Calculate-the-Payment-for-a-Loan1.png)](https://geekexcel.com/excel-formulas-to-calculate-the-payment-for-a-loan/calculate-the-payment-for-a-loan1/#main)<figcaption id="caption-attachment-47777">Calculate the Payment for a Loan</figcaption>

## General Formula:

- You can use the below to calculate the payment for a loan in Excel, use the below formula.

**=PMT(rate,periods,-amount)**

## Syntax Explanations:

- **PMT** – The Excel  **PMT function** helps to return the periodic payment for a loan.
- **Rate** – It represents the interest rate.
- **Periods** – It represents the time duration of the loan amount.
- **Minus Operator (-)** – This symbol will help to subtract any two values.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Practical Example:

Refer to the below example image.

- First, we will enter the input values in **Column B** and **Column C**.
- Now we are going to calculate the payment for a loan in Excel.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-56.png)<figcaption id="caption-attachment-47779">Input Ranges</figcaption>

- Select any cell and apply the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-70.png)<figcaption id="caption-attachment-47778">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result-56.png)<figcaption id="caption-attachment-47776">Result</figcaption>

## Bottom-Line:

From this tutorial, you can get some clarifications to **calculate the payment for a loan in Excel**. Let me know if you have any **doubts** regarding this article or any other article on this site.

Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

### Read Ahead:

- **[Excel Formulas to Calculate the Original Loan Amount ~ Quickly!!](https://geekexcel.com/excel-formulas-to-calculate-the-original-loan-amount/)**
- **[How to Select Table Column Using Shortcuts in MS Excel 365?](https://geekexcel.com/easy-shortcuts-to-select-table-column-in-ms-excel-365/)**
- **[Formulas for counting the cells that contain Errors in Excel Office 365!!](https://geekexcel.com/formulas-for-counting-the-cells-that-contain-errors-in-excel-office-365/)**
- **[Excel Formulas to Calculate the Cumulative Loan Interest ~ Easily!!](https://geekexcel.com/excel-formulas-to-calculate-the-cumulative-loan-interest-easily/)**