How to set up a simple loan calculator in excel with a down payment?

Are you looking for an easy way to calculate loan payments? If so, then Microsoft Excel may be able to help. With the right formulas and a few clicks of the mouse, you can create a simple loan calculator that will let you quickly and accurately determine how much your loan payment will be each month—including any down payment you may need to make. Let’s walk through the steps on how to set up a simple loan calculator in excel with a downpayment.

Setting Up Your Loan Calculator Spreadsheet

The first thing you’ll need is an empty spreadsheet. Start by creating columns for your loan amount, interest rate, term length, monthly payment, and total cost. Then add rows for each month of your loan (if applicable). Once you have your blank spreadsheet set up, it’s time to start entering data into the cells.

Entering Data into Your Loan Calculator Spreadsheet

Start by entering your loan amount into the corresponding cell. Then enter the interest rate as well as the length of time that you anticipate needing to pay off the loan (in months). Next, enter any down payment that you plan on making into its own cell. Finally, enter your desired monthly payment amount into its cell as well.
Now it’s time for Excel to do its magic! In one of the cells at the bottom of your spreadsheet, type in “=PMT(interest rate/12; term length; loan amount – down payment)” and hit Enter. This formula will tell Excel what your monthly payment should be based on the data entered into other cells in the spreadsheet. Make sure that all of these values are expressed as percentages or decimals rather than whole numbers (e.g., 0.07 instead of 7%). Now look at one of the cells at the bottom of your sheet—it should give you an accurate calculation of what this loan will cost over its duration with or without a downpayment included! You can also refer back to this cell whenever you need to double-check how much money needs to be paid each month on this particular loan.


Creating a loan calculator in Microsoft Excel is easy once you understand how it works and know which formulas need to be used! With just a few clicks of the mouse and some careful data entry, you can quickly and accurately calculate exactly how much money needs to be paid out each month on any given loan—including any potential down payments that may need to be made in order for it all work out financially over time. So if you’re ever in doubt about exactly how much money needs to be paid out each month on a particular loan, now you know exactly where turn for help!

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