Select the cell you will place the calculated result in, type the formula =CUMIPMT (B2/12,B3 12,B1,B4,B5,1), and press the Enter key. See screenshot: Note: In the formula, B2 is the annual loan interest rate, B2/12 will get the monthly rate; B3 is the years of the loan, B3 12 will get the total number of periods (months) during the loan; B1 is the Enter "=B4_B3_12" into cell B5 to calculate the total cost of the loan by multiplying the number of monthly payments times the cost of each monthly payment. Tip Change the interest rate, amount borrowed or term values to see how a small change could affect both your monthly payment and your total cost of the Excel Example to Calculate total Loan Amount. Before using the =PMT equation set up an excel work book with the required information - interest rate, amount to be borrowed and number of installments. In the worked example below a loan of 1,000 is required which be paid back over 12 monthly installments at monthly int

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