**MS Excel **is a powerful software. Here, we can perform many different mathematical operations. It provides numerous built-in functions which are highly useful. In our life, we buy various things in installments. It’s very beneficial when we are unable to pay the whole fee at once. But, we’ve to be careful about the **Loan Interest**. So, it’ll be advantageous if we can calculate the remaining loan amounts and interests by ourselves. In this article, we’ll show you the easy and effective methods to **Calculate EMI **for **Bike Loan **in **Excel**.

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## 2 Easy Methods to Calculate EMI for Bike Loan in Excel

**EMI** stands for **Equated Monthly Installment**. That means, we have to pay a fixed amount monthly. This amount includes the interest too. Suppose, you take out a **Loan **to buy a **Bike**. And you’ll pay the loan in **EMI**. This article will show the simple ways to determine the **EMI **for the **Bike Loan **in **Excel**. To illustrate, we’ll use a sample dataset as an example. For instance, in the following dataset, we have a **Principal **(**$10,000**). The fixed **Interest **rate is** 12%** per annum. The tenure is **12 Months**. Here, we’ll find out the **EMI**, **Remaining Principal**, etc.

### 1. Calculate EMI for Bike Loan with Simple Formula in Excel

There’s a general formula to compute the **EMI**. The formula is:

`EMI = [P x R x (1+R)^N]/[(1+R)^N-1]`

Here,

** P** =

**Loan amount or Principal**

** R** =

**Interest rate per month**

** N** =

**Number of monthly installments**

In our first method, we’ll create the above-described formula to **Calculate **the **EMI **for the **Bike Loan **in **Excel**. We’ll divide the given **Interest **(**12%)** by **12**. This is because we have to convert the annual interest rate to the per month rate. Therefore, follow the steps below to perform the task.

**STEPS:**

- First, select cell
**C8**. - Then, type the formula:

`=($B$5*$D$5/12)*((1+$D$5/12)^$F$5)/((1+$D$5/12)^$F$5-1)`

- Subsequently, press
**Enter**to return the**EMI value.**

- After that,
**use AutoFill**to complete the rest. - As expected, the
**EMI**values are the same.

- Now, we’ll find the remaining principal amounts.
- In cell
**F8**, type the formula:

`=B5`

- At the start of the tenure, the remaining amount is the same as the mail principal amount.

- Next, we’ll determine the interest in each installment.
- Select cell
**E8**and type the formula:

`=$D$5/12*F8`

- Press
**Enter**to return the result.

- Afterward, we’ll find the actual
**Principal**amount that is paid. - For that purpose, in cell
**D8**, type the below formula:

`=C8-E8`

- Press
**Enter**.

- Consequently, choose cell
**F9**. Type the formula:

`=F8-D8`

- Press
**Enter**to get the remaining.

- Then, use
**AutoFill**to fill the series. - The values will be the same at first.
- But it’ll return precise results later on.

- Similarly, apply
**AutoFill**to get the Interests. - For now, the values are equal for all.
- It’ll get modified in the next step.

- Accordingly, return the rest of the principal amounts by using
**AutoFill**. - Immediately, you’ll notice that the
**Interest**column and the**Remaining**column get modified automatically.

- However, in the last row, the remaining principal is
**0**. - Therefore, the
**EMI**is completed in**11 months**. - Thus, you can calculate the
**Bike Loan EMI**by yourself.

**Read More:** **SBI Home Loan EMI Calculator in Excel Sheet with Prepayment Option**

### 2. Insert Excel PMT Function to Calculate Bike Loan EMI

Moreover, the **Excel PMT function** can reduce our load of creating the formula. This function returns the fixed payment amount for a fixed interest rate. Hence, learn the following process to figure out the **Bike Loan EMI **in **Excel**.

**STEPS:**

- Firstly, select cell
**C8**. - Then, type the below formula:

`=ABS(PMT($D$5/12,$F$5,$B$5))`

- Next, press
**Enter**. - Thus, it’ll return the
**EMI output.**

- After that, use the
**AutoFill**tool to return the rest of the series. - Get the
**Principal**,**Interest**, and**Remaining**outputs by following the same steps described in the previous method.

- Subsequently, in cell
**F9**, type the formula:

`=F8-D8`

- Get the result by pressing
**Enter**. - Consequently, use
**AutoFill**.

- Lastly, return the other values in the
**Interest**and**Remaining**columns by applying**AutoFill**. - In this way, you can determine the
**EMI amount.**

**Read More:** **Reducing Balance EMI Calculator in Excel Sheet (Create with Easy Steps)**

## Conclusion

Henceforth, you will be able to **Calculate EMI **for **Bike Loan **in **Excel **following the above-described methods. Keep using them and let us know if you have more ways to do the task. Follow **the ExcelDemy** website for more articles like this. Don’t forget to drop comments, suggestions, or queries if you have any in the comment section below.