To calculate the periodic interest rate for a loan, given the loan amount, the number of payment periods, and the payment amount, you can use the RATE function. In the example shown, the formula in C10 is: = RATE(C7, C6, - C5) 12To calculate the total interest for a loan in a given year, you can use the CUMIPMT function. In the example shown, the total interest paid in year 1 is calculated by using 1 for start period and 12 for end period. The The formula in F5 is: = CUMIPMT(5 % 12,60,30000,1,12,0)Select the cell you will place the calculated result in, type the formula =CUMIPMT (B2/12,B3 12,B1,B4,B5,1), and press the Enter key. See screenshot: Note: In the formula, B2 is the annual loan interest rate, B2/12 will get the monthly rate; B3 is the years of the loan, B3 12 will get the total number of periods (months) during the loan; B1 is the In the example illustrated below, the operation syntax inserted into the formula bar of cell B6 is thus-=PMT (B3/12,B2,-B1) This calculates the monthly payment with interest for the loan. Figure 2. of Excel PMT Function. Loans consist of 4 basic parts. The Loan amount, Rate of Interest, the loan duration (number of regular payments), and an Excel formula: Calculate interest rate for loanInterest Formula | Calculator (Examples with Excel Template)IPMT Function - Interest Portion of a Loan Payment in Excel11/11/2020 · The fourth column is the interest, for which we use the formula to calculate the principal repaid on our monthly amount to discover how much interest is to be paid: =-INTPER(TP;A18;$B$4 12;$B$3 The rate argument is the interest rate per period for the loan. For example, in this formula the 17% annual interest rate is divided by 12, the number of months in a year. The NPER argument of 2 12 is the total number of payment periods for the loan. The PV or present value argument is ;· Loan balance at time Period: =Loan-Pmt CalcPds. The remaining loan balance is equal to the beginning Loan amount minus the cumulative principal paid. Cumulative interest paid at time CalcPds: =PdRate (Period Loan – ((Period^2-Period)/2) PrinPmt) Until the final formula above, the term-loan calculations were easy.

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