Howto excelfunction
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The payment function in Excel can be used to calculate monthly loan payments. It requires entering the loan amount, interest rate, term of the loan in years, and leaves the monthly payment cell blank to calculate. To use it, one opens Excel, creates a title over columns for loan amount, interest rate, term, and monthly payment. The payment function is selected from the function library, and the rate and number of periods cells are referenced to populate the monthly payment automatically. In summary, the payment function simplifies monthly loan calculation in Excel without recalculating when inputs change.
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Howto excelfunction
- 1. Payment Function Short Version for Dummies By: Nandu Talugula
- 2. Why Use the Payment Function • Its a great way to figure out ones monthly payments • It looks neat and one can easily follow the numbers • Easy change where one can just plug in new numbers without recalculating
- 3. How to Use it • First open Excel • Create a title over 3-4 columns • Column A would contain subtitles: o Amount o The loan amount actually needed o interest rate o How many years o Monthly payment • Enter all the information except for the last row obviously
- 4. How to cont'd • Click the cell right of the monthly payment • Click the functions button o The one that says fx • Type PMT in the search bar within the popped up window • For rate click in the cell containing the rate and divide by 12 • For NPEV click the number of years and multiply by 12
- 5. JING
- 6. Conclusion If you cannot follow this then just drop out!