# How to calculate EMI in excel with Principle and the Interest components | DataWitzz

#### How to calculate EMI in excel

How to calculate EMI is most annoying thing when we take loan or planning to take loan. It also very difficult when we wanted to check interest and loan amount components spread over EMI tenure. Though there multiple online stuffs are available to calculate EMI but the spread over EMI tenure is very early. I just tried to make it excel which will surely help you.

Let us first learn How to calculate EMI in excel :

In excel to calculate EMI we would use PMT function of excel. Syntax for PMT function is as below:

PMT function requires below input to calculate EMI:

• rate: interest rate of loan per month
• nper: Tenure of loan in month
• pv: Present value of loan or Loan Amount
• [fv] – optional: The future value or cash balance that you want at the end of loan tenure. The default value would be 0 at then end of loan tenure
• [type] -optional : It means when payments are due. 0 = end of the period. 1 = beginning of the period. Default is 0.

Now lets understand it by an example as illustrated in the below image: