Excel calculating interest rate on loan
You can use the CUMIPMT function to calculate the cumulative interest on a loan in Excel for a specific period like a specific month or year. Function Objective: Cumulative interest paid on a loan between start_period and end_period. The interest rate per period.
How do I calculate interest rate on a loan in Excel?
Quote: And the function name is rate equals rate and we need similar pieces of information as we used before in previous lessons so n per is the number of payments. Or a number of periods of the loan.
How do you calculate the interest rate on a loan?
Calculation
- Divide your interest rate by the number of payments you’ll make that year. …
- Multiply that number by your remaining loan balance to find out how much you’ll pay in interest that month. …
- Subtract that interest from your fixed monthly payment to see how much in principal you will pay in the first month.