How do I calculate EMI in Excel using the PMT formula?

Short answer
You can calculate EMI in Excel using the PMT formula. You need the loan amount, interest rate, and tenure.

What is the PMT Formula

PMT is an Excel function that calculates the fixed EMI for a loan. It works the same way banks calculate EMIs.

The formula structure is:
PMT(rate, nper, pv)

Step-by-Step Example in Excel

Assume this simple case:
Loan amount = ₹5,00,000
Interest rate = 12% per year
Tenure = 5 years

Step 1: Convert values

Banks charge interest monthly, so convert numbers first.
Monthly interest rate = 12% / 12 = 1% or 0.01
Total months = 5 × 12 = 60

Yeh step skip karoge toh answer galat aayega.

Step 2: Enter data in Excel

Let’s say:
A1 = Loan amount → 500000
A2 = Annual interest → 12%
A3 = Tenure in years → 5

In another cell, type the formula:

=PMT(A2/12, A3*12, -A1)

Important point. Loan amount ko negative likhna padta hai, warna EMI negative show hogi. Yeh Excel ka rule hai.

Step 3: Result

Excel shows an EMI of around ₹11,122 per month.
This EMI includes both principal and interest.

Things to Remember

Always use the monthly rate and the monthly tenure.
PMT gives exact EMI, no approximation.
The same formula works for home loans, car loans, and personal loans.

Final Takeaway

Excel PMT formula makes EMI calculation very easy once you know the rate, tenure, and loan amount, bas formula daalo and EMI mil jaata hai. Thoda practice karoge toh loan planning kaafi simple ho jaati hai.