How to Calculate the Car Payment in Excel – 6 Steps

The dataset below details the Cost of Car, the Down Payment, the Interest rate and the period to pay the loan.

Step 1 – Compute the Total Payable Interest to Calculate the Car Payment in Excel

• Enter the following formula in C10 to calculate the Financed Amount.

C4 represents the Cost of Car and C5 refers to the Down Payment.

• Press ENTER.

This is the output.

• Enter the following formula in C11.

C6 represents the Interest Rate, C7 indicates the Years, and C10 represents the Financed Amount .

• Press ENTER.

Note: A negative sign is used before the pv argument, as payments generate a negative cash flow.

This is the output.

• Enter the following formula in C12.

• Press ENTER.

You will see the Total Interest:

Read More: How to Calculate Monthly Payment with APR in Excel

Step 2 – Calculate the Starting Balance

• Enter 0 and 1 in the Month column.

• Drag down the Fill handle.

• Drag the Fill Handle until you reach 60 (60 months).

This is the output.

• Enter the following formula in F15.

• Press ENTER.

This is the output.

• Enter the following formula in C16.

• Press ENTER.

You will see the Starting Balance in Month 1.

Read More: How to Calculate Loan Payment in Excel

Step 3 – Determine the Monthly Interest to Calculate the Car Payment in Excel

• Use the following formula in D16.

C16 refers to the Starting Balance in Month 1, and $C$6 represents the Interest Rate.

• Press ENTER.

Note: An absolute cell reference is used in C6 ($C$6). As the loan is paid monthly, the Interest Rate is divided by 12.

You will see the Monthly Interest:

Read More: How to Calculate Auto Loan Payment in Excel

Step 4 – Calculate the Monthly Payment

• Use the following formula in E16.

$C$11 refers to the Monthly Payment, and D16 represents the Interest.

• Press ENTER.

You will see the Payment amount:

Read More: How to Calculate Monthly Mortgage Payment in Excel

Step 5 – Calculate the Ending Balance

• Use the following formula in F16.

E16 represents the monthly Payment.

• Press ENTER.

This is the output.

Step 6 – Create a Monthly Payment Chart to Calculate the Car Payment in Excel

• Select C16:F16.

• Drag down the Fill Handle to see the result in the rest of the cells.

Practice Section

Practice here.

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