Inputs for a monthly loan.

In this example, you will need to enter the required inputs for a loan where the PMT() function has already been entered. This is the exact same loan as in the prior example, but with one change; this loan is paid monthly.

You will need to be able to properly prorate the interest rate and correctly state the number of periods to get the correct payment amount!

This loan is as follows:

Loan balance is $1,000,000.
Interest is 5%, payable monthly.
Loan amortizes for 10 years.

This exercise is part of the course

Loan Amortization in Google Sheets

Exercise instructions

In cell E6, enter the loan balance.
In cell E1, enter the effective interest rate; the annual interest rate divided by the number of annual periods.
In cell E2, enter the number of amortization periods on the loan.

Hands-on interactive exercise

Turn theory into action with one of our interactive exercises