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

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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. Itâ€™s very beneficial when we are unable to pay the whole fee at once. But, weâ€™ve to be careful about the Loan Interest. So, itâ€™ll be advantageous if we can calculate the remaining loan amounts and interests by ourselves. In this article, weâ€™ll show you the easy and effective methods to Calculate EMI for Bike Loan in Excel.

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

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 youâ€™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, weâ€™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, weâ€™ll find out the EMI, Remaining Principal, etc.

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

Thereâ€™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, weâ€™ll create the above-described formula to Calculate the EMI for the Bike Loan in Excel. Weâ€™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, weâ€™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, weâ€™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, weâ€™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 itâ€™ll return precise results later on.

• Similarly, apply AutoFill to get the Interests.
• For now, the values are equal for all.
• Itâ€™ll get modified in the next step.

• Accordingly, return the rest of the principal amounts by using AutoFill.
• Immediately, youâ€™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: How to Make EMI Formula in Excel

### 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, itâ€™ll return the EMI output.

NOTE: The ABS function returns the value only. It doesnâ€™t consider the signs.
• 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.

## 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. Donâ€™t forget to drop comments, suggestions, or queries if you have any in the comment section below.

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Aung Shine

My name is Aung. I have my B.Sc. degree in EEE. From now on, I will be working with Microsoft Excel and other useful software, and Iâ€™ll upload articles related to them. My current goal is to write technical contents for anybody and everybody that will make the learning process of new software and features a happy journey.

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