How the Formula to Calculate Loan By Using Excel

Credit consumer is divided into 2 for the method of imposition of interest, namely Fixed Interest (Fixed Rate) and declining interest. For the calculation of fixed interest still easy, stay (Principal Debt x (Great Rates per month x number of months installment)) / number of months installment = your installment . Well this is somewhat complicated if debt and declining interest model commonly used in the Housing Credit. Declined interest can be calculated with rich formulas in fixed interest. But do not worry, Excel provides a formula.

To calculate the interest decreased interest, we can use the Microsoft Excel's formulas that is PMT . The use is very simple: PMT (interest per month% / 12; the number of months, the loan amount) . The result is negative you can multiply the result by -1 to restore the value to be positive.

For example, the interest per month was 12.8%, long installment is 120 months (10 years) and a large debt principal (loan amount) is 150,000,000. So if we use a PMT formula: = PMT (12.8% / 12; 120 150 000 000) will be out the amount of your mortgage in each month.

The result above is negative, making positive multiply it by -1. So the formula becomes as = PMT (12.8% / 12; 120 150 000 000) *- 1.