# Premium Sample: Excel Tip: Create a Quick Loan Calculator in Excel

Step 1: Enter the following titles in six consecutive rows:

Cell A1 Price

Cell A2 Downpayment

Cell A3 Principal

Cell A4 Interest

Cell A5 Years

Cell A6 Payment

Step 2: These titles will become the cell names for the cell to the right of each cell containing a title. Highlight the cells containing titles and the cell to the right of each of those cells (12 cells altogether). Choose Insert | Name | Create from the Excel menu. The Create Names window will appear with "Left column" checked. Click OK. The names have been assigned.

Step 3: Enter known amounts in the cell to the right of each of the cells containing titles. For example:

Cell B1 10000

Cell B2 20%

Cell B4 6.5%

Cell B5 4

Step 4: Enter a formula to calculate loan principal in Cell B3:

=Price*(1-Downpayment).

Step 5: Enter a formula to calculate the loan payment in Cell B6:

=PMT(Interest/12,Years*12,Principal).

Once the calculator is in place you can substitute amounts for Price, Downpayment, Interest, and Years and the calculations will update automatically.