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.**

- 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.**

**Download Practice Workbook**

Download the following workbook to practice by yourself.

## 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.