By: Shamima Sultana

In reply to F.Snipes.

Hello F. Snipes,

Thank you for your question! To calculate a 5-year loan with an 8% annual interest rate using Excel, you can use the PMT function for equal monthly payments or create a loan amortization schedule using the reducing balance method.

Here’s a quick method using PMT:
=PMT(8%/12, 5*12, -Loan_Amount)

1. 8%/12 is the monthly interest rate.
2. 5*12 is the total number of payments (months).
3. Loan_Amount is the total loan you took (make sure it’s entered as a positive number).

Regards
ExcelDemy