The article shows how to make a two wheeler loan EMI Calculator in Excel. In today’s business world, EMI (Equated Monthly Installment) has become a vital part of purchasing products. Customers are now interested in buying products with EMI because it can relieve them from the burden of the instant cost of money. Suppose you need to buy an expensive product but you don’t have that amount of money to buy it or if you spend all the money on that, you are going to suffer for a month or more. In order to save you from this burden, banks provide you the EMI service where you can purchase an expensive product by paying a monthly amount to the seller for a certain period. Excel has its own function to calculate the EMI amount. We will provide you with this simple calculator at the end of this article.

## How to Make Two Wheeler Loan EMI Calculator in Excel: 2 Ways

Suppose you bought a product which costs **10000 dollars**. You will return the money after **12 **months with **EMI **at an interest of **5%**. We depicted this scenario in the dataset.

You may wonder if we’ve already calculated the **EMI** without showing you the process, don’t worry, end of the article you will be able to make a sheet like this.

**1. Using Excel Formula to Make Two Wheeler Loan EMI Calculator**

We can use **the PMT function **to calculate the **EMI **amount. I provided you with a detailed dataset so that you can see not only the **EMI **amount but also other parameters in the dataset. Let’s go through the following part of this section.

**Steps:**

`=ABS(PMT($C$5/12,$D$5,F8))`

The formula here uses the **PMT function, **which automatically calculates the **EMI amount** by taking the **interest rate**, **time**, and **principal **parameters sequentially. I divided the **interest rate **by **12 **because we will be paying the **EMI** for **12 **months, if you’re paying interest for any other number of months divide by that number. I also used **the ABS function **to keep the value positive.

Make sure that you’ve filled the Remaining column for this row before using the formula, otherwise, you will not get a value.

- After that, press the
**ENTER**button and you will see the**EMI**amount for the purchase.

- Next, type the following formula to calculate the
**Interest**amount for the first installment.

`=$C$5*F8/12`

- Once we’ve found these values, we can calculate the
**Current Principal**value of the loan and for that, the following formula will be used.

`=C8-D8`

Now, let’s proceed to calculate **EMI** for the next month. But before that, we need to calculate the **Remaining Principal **after the previous payment. You have to do this every month as the **EMI** amount depends on the remaining value.

- Write down the following formula to calculate the
**Remaining Principal**.

`=F8-E8`

- Now, drag the formula from the previous cell to get the
**EMI**amount for this month.

- Similarly, you can use the Fill Handle to AutoFill all the blank cells in the dataset. You will see the
**Interest**,**Current Principal**, and**Remaining Principal**for each month. This helps you to to understand the summary of the**EMI**

The main data here is the **EMI **amount which is always constant over the **12 **months, which means you have to pay the salesman or sales organization **856.07 dollars **each month.

Thus you can make a two wheeler loan **EMI Calculator **in Excel.

* Note: *The month number will begin from 0 and end one less than the number of months. You can see the interest amount is getting lower as the month progresses.

**Read More: **Personal Loan EMI Calculator Excel Format

**2. Applying Arithmetic Formula to Make Two Wheeler Loan EMI Calculator**

If you know the **EMI **formula and don’t want to use the built-in Excel function, you can replicate the formula in Excel too. The formula for **EMI **calculation is given below.

Where,

** ****P = Principal**

** ****r = Interest Rate**

** ****n = Number of Months for Installment**

We will be using the same steps in **Section 1**. We will only change the **EMI **formula. Let’s go through the following description in order to understand the process.

**Steps:**

- Using the above concept, type the following formula instead of using
**the PMT function**that we used in**Section 1**.

`=B5*(C5/12)*(1+C5)^D5/((1+C5)^D5-1)`

The rest of the calculations and steps are completely the same as in the previous section.

Thus you can make a two wheeler loan **EMI Calculator **in Excel by using an arithmetic formula of **EMI**.

## EMI Calculator

Here, I’ve prepared a simple and effective **EMI Calculator **so that you can calculate any **EMI **amount for any principal and interest rate. Provide your value to the respective fields and you’ll get the **EMI**.

**Download Practice Workbook**

## Conclusion

By the end of the article, we can conclude that you will learn how to make a two wheeler loan **EMI Calculator **in Excel by using both Excel and arithmetic formulas. If you have any better methods or questions or feedback regarding this article, please share them in the comment box. This will help me enrich my upcoming articles.

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