How To Calculate In Excel
How To Calculate In Excel – Making a budget is key to financial success. But, let’s face it: no one wants to sit down and manually calculate their monthly expenses. In addition, anyone who has taken out a loan knows that the monthly payment is one of the most important factors in determining how much you can pay for a loan. .
But for many people, calculating monthly payments is a mystery. If you are one of those people, fear not! Excel can do the math for you. If you’re trying to manage your finances and want to know exactly how much your mortgage will cost each month.
How To Calculate In Excel
Or you’re looking to buy a new car and need to figure out what kind of monthly payment you can afford. Regardless of the reason, Excel is a great tool for calculating monthly payments.
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And once you know how to do it, it’s actually not that hard. For example, being able to calculate monthly payments in Excel can be useful in a variety of situations.
The PMT function is a built-in function in Excel that is classified as a financial function. It can be used to calculate a loan payment based on constant payments and a constant interest rate.
Now that we know what the PMT function is and what each of its arguments represents, let’s see how to use it in Excel in different situations with some examples.
Here we will explain to you how to calculate the payment of a loan with the most used method with the help of an example, so let’s take a look
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Suppose you take out a loan for $10,000 at an interest rate of 5% with a term of 60 months. In this case, your monthly payment would be $188.71.
Note that the interest rate is entered as 5%/12 since the interest rate is given as an annual percentage rate (APR) and we want to calculate the monthly interest rate.
The negative sign in front of the result simply means that the payment is an outgoing payment; In other words, you make one loan payment each month.
The interest rate of the loan is 6% and the term is 60 months. In this case, your monthly payment would be $329.69.
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Note that we include the -4000 for the FW argument since we are making a down payment on the loan.
If you have not made a down payment, you would simply omit this argument or enter 0 for the fv argument.
Suppose you take out a loan of $10,000 at an interest rate of 5% with a term of 60 months. In this case, your monthly payment would be $188.71.
However, suppose you want to make an additional payment of $50 each month. Excel’s PMT function cannot calculate the new monthly payment because it only takes into account the original loan amount, interest rate, and term.
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Instead, you would have to use the NPER function along with the PMT function to calculate the new monthly payment.
The PMT function is a quick and easy way to calculate your monthly loan payment in Excel.
It’s also a handy feature to know if you’re creating a budget or financial plan. For example, if you’re figuring out how much you can afford to spend on a home, you can use the PMT function to calculate your monthly payment for different loan amounts, interest rates, and terms.
There you have it! A step-by-step guide on how to calculate monthly payments in Excel. This method is simple, easy to follow and accurate. Whether you’re figuring out how much your car payment will be or figuring out your mortgage payment, Excel has you covered. And now that you know how to do it, just fire up Excel and let it do the math for you.
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Index The Anatomy of the SUMIF Function A Real Example of Calculating Percentages as a Proportion in Excel How to Calculate Percentages as a Proportion in Excel
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In mathematics, a ratio is basically a comparison between two numbers. This is when two ratios are equal to each other. Simply put, it is a part or part compared to or in relation to a whole group or number.
A percentage is part of 100. For example, 50 of 0 f 100 or in percentage format, 50%. So what is the relationship between percentage and proportion?
First, both belong to a part of a whole. When we multiply a ratio by 100, we get the percentage of parts that are taken from the whole. Similarly, we get the ratio by multiplying the percentage with the whole.
We will cover two ways to calculate percentages like proportions in Excel depending on the data set. The first is to simply divide the partial or sample value by the full or total value. And the second is to use the SUMIF function.
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Suppose you are a teacher who wants to calculate the percentage score of a student’s exam results. So you want to know what is the percentage score of a student who scores 85 out of 100 on an exam.
In this example, you can get the percentage in ratio by dividing 85 by 100. Also, you can do this task quickly and easily in Excel, especially when dealing with large amounts of data.
Let’s look at our sample data. For example, we want to find the percentage of each ordered product of the total number of products.
In this case, we have the total number of products ordered, which makes the calculation easier. The formula for calculating percentage as a ratio in Excel is simply part/total = percentage.
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Essentially, we just need to divide the number of the specific product ordered by the total number of products ordered.
Now let’s look at another situation. For example, we want to calculate the percentage only as a proportion of specific products. In this case, we only want to know the percentage of juices ordered from the total number of products.
In this case, we will use the SUMIF function. First, we must enter the criteria, which in this example would be juice. Then, we have to select the range of products requested. Finally, divide by the total number of products ordered. And even! We can get the ordered percentage of juice products.
1. First, type the equals sign to start the calculation. Then select the cell that contains the part or ratio you want to calculate. In this case, we select B2. Finally, divide it by the total number of products ordered in B7.
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We’ll also include B7 to make it an absolute cell reference. This locks it in as our denominator when we drag the formula. So the full formula would be =B2/$B$7.
3. Next, we need to change the result from decimal to percentage. To do this, go to Start and click the Number Format drop-down menu. Then select percentage.
4. If there are decimal figures in the percentages, we can simply remove this. First, select the percentage column and right click. Then click number format.
5. In the number format window, go to the percentage category. and change the decimal places to zero. Finally, click OK to apply the changes.
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6. Now, let’s calculate only the percentage of specific products. First, let’s create a table where we will enter the result. Please specify the product you are using, which in this case is juice. Also, we will use this as a cell reference.
7. Then type ‘=SUMIF’ to start the function. Then select the range that contains the products which are A11:A15 and select the cell that contains the product you are looking for which is G10. And that will be our criterion.
Finally, select the range with the number of orders that is B11:B15 and divide it all by the total number of products ordered. So the full formula would be =SUMIF(A11:A15;G10;B11:B15)/$B$16.
8. Again, we need to change the result from decimal to percentage. So, right click on the decimal point and select number format. Then select the percentage category and change the decimal places to zero. Finally, click OK to apply the changes.
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Great! That’s pretty much it. You learned how to calculate percentage as a ratio in Excel using the basic formula and the SUMIF function.
Interested in learning more about what Excel can do? Now you can use the other Microsoft Excel formulas available to create great worksheets that work for you. Be sure to subscribe to our newsletter to be the first to hear about the latest guides and tutorials from us.
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