How to calculate the number of months until a loan is paid off (given principal, APR and payment amount)?
How do you calculate monthly payments with APR?
How to calculate your monthly APR
- Step 1: Find your current APR and current balance in your credit card statement.
- Step 2: Divide your current APR by 12 (for the twelve months of the year) to find your monthly periodic rate.
- Step 3: Multiply that number with the amount of your current balance.
How do you calculate monthly principal and interest?
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.
How do I calculate a loan payment in Excel?
Excel PMT Function
- Summary. …
- Get the periodic payment for a loan.
- loan payment as a number.
- =PMT (rate, nper, pv, [fv], [type])
- rate – The interest rate for the loan. …
- The PMT function can be used to figure out the future payments for a loan, assuming constant payments and a constant interest rate.