Excel PMT Function

PMT function is very useful for calculating monthly payment required to payback a loan or mortgage at a fixed rate. This function require a minimum of three inputs, periodic rate, number of periods, present value or the loan amount. Here is a simple example.

Home Loan: 350,000.00
Interest rate: 4.5%
Number of years to repay the loan: 25

Note: To calculate monthly payment, we need to find the monthly rate and number of months as shown above. Then it is simply a matter of substituting the values into the payment function, as shown in the formula view below.

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A Comprehensive Evaluation of the Internal Consulting Process: Steps and Considerations

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CUMIPMT and CUMPRINC function

CUMIPMT Cumulative interest payment function allows you to calculate the interest paid for a loan or from an investment from period A to period B. When getting a loan, CUMIPMT function can be used to calculate the total amount of interest paid in the first five months or from period 12 to period 20. A period can be a month, a week or two week. Loan Amount : 350,000.00 APR: 4.5% Down payment: 0.00 Years: 25 Payment per year: 12 From the above data, we can calculate the following: No of Period: 25 × 12 = 300 Periodic Rate: 4.5/12 = 0.375% Here is how you will substitute these values into the function. = CUMIPMT (periodic rate, No of period, vehicle price, start period, end period, ) = CUMIPMT (0.375, 300, 350000, 1, 5, 0) In an excel worksheet, we use cell address instead of actual values as shown below: Here is the formula view of the worksheet: CUMPRINC Another related function is CUMPRINC. CUMPRINC function is used to calculate cumul

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