Simple steps To Create a Loan Calculator in Microsoft Excel

Pay your monthly rate on time is an important things you have to do. In anticipation to avoid errors, you can create a simple loan calculator with Microsoft Excel. Below are the steps you should do:

1. Create labels according to your variables in a separate cell
Make sure you put these labels with a format that can allow you to access and search. Usually, there are some commonly used variables, such as the loan amount, the annual interest rate, and the number of years to pay off your loan. Place these labels on the three cells below the title on the top right corner of the page. Fill in the right cell-value label with the actual value of these labels.


2. Use the appropriate formula
You will need the PMT function to calculate the monthly payment. Write the label of monthly payment, and in the next blank cell will be used to put the formula to calculate your monthly rate. For example, if the amount of the loan is in cell B3, actual rate in cell B4 and the number of year in cell B5, then you have to type the formula is =PMT(B4/12,B5*12,B3).


The explanation is as follows:
B4/12 used as a formula to get your monthly interest, monthly interest is very important because this will be used to determine the amount of your monthly payment.
B5 * 12 is used to determine the number of months you will need to pay off your loan.
B3 is used to indicate your loan amount.

Once you enter this formula, then you will be able to calculate your monthly payment automatically. All you have to do is enter your variable values.


3. Once you have finished the above steps, you might find that the amount of the monthly have red color.
You do not need to be confused. This color is only an indication that it is the amount of money that you must pay. If you want to change it, you can use the absolute function. Thus, the previous formula should you change as =abs(PMT(B4/12,B5*12,B3).


Now your loan calculator are finished and you can use it. However, if you want a more complete application that can monitor your loan up to the last penny, then you can download the refinance calculators application created by professionals with Microsoft Excel. By using this application you can see all your accounts, including balance statements and monthly interest every time you make a payment. In addition to these applications, there is also interest only calculator application that can show you how your monthly payments affect your payment deadline.

Loan calculator application is very important if you want to be sure on any of your payment. because this application is very consistent and you can use it for free.