Create a Quick Loan Calculator in Excel
You can use Excel to help figure out what your loan payment would be should you decide to borrow money. Here's a quick way to set up a loan payment calculator in your Excel worksheet:
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:
Step 5: Enter a formula to calculate the loan payment in Cell B6:
Once the calculator is in place you can substitute amounts for Price, Downpayment, Interest, and Years and the calculations will update automatically.
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