Looking for ways to know how to calculate bond payments in Excel? Then, this is the right place for you. Here, you will find 2 different step-by-step explained ways to calculate bond payments in Excel.

**Table of Contents**Expand

## What Is Bond Payment?

The interest paid by someone who issued a bond from a bondholder at each period of payment until the the bond matures is called a Bond Payment.

Depending on the negotiated time, the payment plan may be quarterly, semi-annually, or yearly.

## 2 Ways to Calculate Bond Payments in Excel

We can calculate bond payments in 2 different ways in Excel. Here, you will find those step-by-step methods.

### 1. Using PMT Function to Calculate Bond Payments Per Month in Excel

We can use **the PMT function** to calculate bond payments per month in Excel.

Here, we have a dataset containing the data on Bond Amount, Annual Interest, and Period of Bonds (Years). Now, we will show you how to calculate Bond Payments using this dataset.

Follow the steps to do it on your own.

**Steps:**

- First, select Cell
**C8**. - Then, insert the following formula.

`=PMT(C6/12,C7*12,-C5)`

Here, in the **PMT **function, we divided the value of Cell **C6** by 12 to set it as the rate, multiplied Cell **C7** by **12, **and used it as nper. Finally, we used the negative value of Cell **C5 **as pv which is the present value.

- After that, press
**ENTER**to get the value of the Bond Payment Per Month.

- Next, select Cell
**C9**. - Then, insert the following formula.

`=C8*12*C7`

Here, we multiplied Cell **C8** by 12 and Cell **C7** to get the value of the Bond Payment.

- Now, press
**ENTER**to get the value of the Bond Payment.

- Then, select the Cell
**C10**. - Next, insert the following formula.

`=C9-C5`

- Finally, press
**ENTER**to get the value of Total Interest.

**Read More: **How to Calculate Present Value of a Bond in Excel

### 2. Use of Generic Formula to Calculate Bond Payments in Excel

In the second method, we will show you how to calculate bond paymentÂ in Excel Manually.

Here, we have a dataset containing the data of Bond Amount, Annual Bond Rate, and Number of Payments Per Year. Now, we will calculate the Bond Payment of this dataset Manually.

**Steps:**

- First, select Cell
**C8**. - Then, insert the following formula.

`=C5*(C6/C7)`

Here, we first divided Cell **C6** by Cell **C7**, then multiplied it by Cell **C5** to calculate the Bond Payment.

- Finally, press
**ENTER**to get the value of the Bond Payment.

**Read More:** Calculate the Issue Price of a Bond in Excel

## Things to Remember

- Here, in the
**PMT**function, we divided the Annual Interest rate by 12 for rate and multiplied the Period of Bonds by 12 for nper as we are calculating the Bond Payment Per Month. On the other hand, for Annual Bond Payment, you can use the Annual Interest Rate and Period of Bonds directly without dividing or multiplying by 12 respectively. - Additionally, the
**PMT**function automatically returns a negative value as it represents payments being made from bond issuer to the bondholder. So, here we used the negative value of**pv**to avoid the negative value.

## Practice Section

You will get a dataset like the image given below in this article to practice on your own.

## Download Practice Workbook

## Conclusion

So, in this article, you will find 2 ways to calculate bond payments in Excel. Use any of these ways to accomplish the result in this regard. Hope you find this article helpful and informative. Feel free to comment if something seems difficult to understand. Let us know any other approaches which we might have missed here.Â Thank you!

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