The loan payment formula is used to calculate the payments on a loan. R Monthly Interest Rate in Decimal Form. PMT C612 C7- C5 The last thing we may want to include is a total that shows our car buyer how much money she will end up paying.
You can calculate your interest costs using the formula I P X R X T where.
Open a new worksheet and save the file with a descriptive name such as Car Loan. P Principal Amount on the Loan. A loan by definition is an annuity in that it consists of a series of future periodic payments. In Excel you could calculate the monthly payment using the following formula.