What is NPER function in Excel? NPER function is one of the Financial functions in Microsoft Excel that returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. Syntax of NPER function NPER(rate,pmt,pv,[fv],[type]) The NPER function syntax has the following arguments: Rate: The interest rate per period. Pmt: The payment made each period;…
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Calculate interest rate for loan in Excel
To calculate the periodic interest rate for a loan, given the loan amount, the number of payment periods, and the payment amount, you can use the RATE function. Formula =RATE(periods,payment,-amount)*12 Explanation In the example shown, the formula in C10 is: =RATE(C7,C6,-C5)*12 Loans have four primary components: the amount, the interest rate, the number of periodic payments (the loan term) and…
Calculate periods for annuity in Excel
To calculate the number of periods needed for an annuity to reach a given future value, you can use the NPER function. Formula =NPER(rate,pmt,pv,fv,type) Explanation In the example shown C9 contains this formula: =NPER(C6,-C7,-C4,C5,0) Explanation An annuity is a series of equal cash flows, spaced equally in time. The goal in this example is to calculate the years required to…
Calculate payment periods for loan in Excel
To calculate the number of payment periods for a loan, given the loan amount, the interest rate, and a periodic payment amount, you can use the NPER function. Formula =NPER(rate,payment,-loan) Explanation In the example shown, the formula in C10 is… =NPER(C6/12,C7,-C5) How this formula works Loans have four primary components: the amount, the interest rate, the number of periodic payments…
PMT, RATE, NPER, PV and FV Financial Functions in Excel
Learn all about Excel’s PMT, RATE, NPER, PV and FV To illustrate Excel’s most popular financial functions, we consider a loan with monthly payments, an annual interest rate of 6%, a 20-year duration, a present value of $150,000 (amount borrowed) and a future value of 0 (that’s what you hope to achieve when you pay off a loan). We make monthly payments, so we use 6%/12 =…