6 Steps to Create Car Loan Calculator in Excel Sheet

Organizing data using various techniques is quite common in Microsoft Excel. Records are arranged in a tabular form here. You can create your personal car loan calculator. You can also modify the total amount of the loan and EMI from it. This article will help you with the calculation. You can also see what amount is getting where for every month. All these works can be personalized in an Excel sheet if you create a car loan calculator. It applies to multiple types of car loans and you can eventually modify it according to your requirements. All the methods have step-by-step instructions with a figurative description.


📁 Download Excel File

Download the Excel file below.


Car Loan EMI: Ins & Outs

Equated Monthly Installment (EMI) is an advantage that banks usually offer you in case you need loans from them. Banks have their schemes for specific amounts of loans, followed by interest rates and duration to pay back. Since you have to pay a little extra as loan interest to the bank, it is better to optimize the money and duration. Using a calculator, you can easily choose your preferred option.

Actually, EMI is a complex calculation that depends on all the variables in the process. A lower EMI means you need to pay less monthly. The following are the factors depending on it.

  • You will get a longer duration to pay back.
  • After the duration, you will find yourself paying more interest than a higher EMI scheme.

On the other hand, a higher EMI means you need to pay a higher amount of money monthly. The following are the factors depending on this scheme.

  • You will get a short period of time to pay back.
  • After the entire payment, you will find yourself paying comparatively less interest than a lower EMI scheme.

Learn to Create a Car Loan Calculator in Excel Sheet with These 6 Steps

The article is going to introduce you to EMI calculation, and the key factors controlling it. You will find calculations for the Interest, EMI, Payment, Due Payment, and finally the Total interest and Total Payment. Therefore, users will get a walkthrough of these solutions. You will find a dataset to modify in the following methods below to help you understand how to create a car loan calculator in an Excel sheet. You should be able to create a calculator like the following image.

Dataset table for car loan calculator in excel sheet


Step

Step 1: Organizing Data and Table

You need to create a table first to generate the calculator. This is the first step to create a car loan calculator in an Excel sheet. In order to optimize the amounts, you can modify them from the variable section. Eventually, your table will automatically generate the required amount from the calculator.

⬇️⬇️ STEPS ⬇️⬇️

  • First, select cell range B3:F3 to add a title to your calculator.
  • Second, choose cell range B5:F6 to add the variables like loan amount to take from the bank, interest rate, and duration to pay back.
  • Third, you can take 7 rows for the detailed calculation if you want the duration to be 6 months. If the duration is 12/24 months, you can work the same way by adding rows in the same amount.
  • Fourth, in the calculation table add separate columns for Month No., Due Payment, Interest, EMI, Payment.
  • Fifth, select cell range B16:F17 to calculate Total Interest and Total Paid Amount separately.

  • Sixth, add month numbers starting from 0. You can use the Fill Handle icon to add the rest of the numbers as well.
  • Seventh, select cell C9 to show the entire loan amount as the due payment.
  • Finally, enter the following formula on the cell.
=B6

Organizing table to create a car loan calculator

📕 Read More: 4 Approaches to Calculate Home Loan Interest in Excel


Step

Step 2: Determining Interest Amount

Banks apply interest rates based on years. To get a value based on months, you should modify the calculation to implement the rate precisely.

⬇️⬇️ STEPS ⬇️⬇️

  • Initially, select cell D9.
  • Next, enter the following formula on the cell.

=$D$6/12*C9
  • Then, hit the Enter key.

determining Interest in car loan calculator

📕 Read More: 2 Approaches to Calculate Interest Between Two Dates in Excel


Step

Step 3: Estimating EMI

This is the most important step to create a car loan calculator in an Excel sheet. To calculate the EMI you need a complex formula. Using the formula described below, you will get the EMI value. It will be the same throughout the months.

⬇️⬇️ STEPS ⬇️⬇️

  • In the beginning, select cell E9.
  • Now, enter the following formula on the cell using ABS and PMT functions.
=ABS(PMT($D$6/12,$F$6-B9,C9))
  • After that, hit the Enter key.

EMI calculation for car loan calculator in excel sheet

  • Finally, use the Fill Handle icon, and copy the formulas down their cells.

📕 Read More: 2 Easy Ways to Calculate Gold Loan Interest in Excel


Step

Step 4: Evaluating Payment Made

Payment made is the amount that is evaluated without the interest amount from the EMI amount.

⬇️⬇️ STEPS ⬇️⬇️

  • To begin with, select cell F9.
  • Here, enter the following formula on the cell.
=E9-D9
  • Now, hit the Enter key.

Made payment evaluate to add in the car loan calculator

  • Finally, use the Fill Handle icon and copy the formulas down to their cells.

📕 Read More: 5 Examples to Calculate Monthly Interest Rate in Excel


Step

Step 5: Calculating Due Payment

Since the payment made is recorded for the first month, you can exclude it from the total loan amount. Followed by the due amount, the interest, EMI, payment made, etc. will update their data values for the next months automatically.

⬇️⬇️ STEPS ⬇️⬇️

  • First, select cell C10.
  • Second, enter the following formula on the cell.
=C9-F9

Calculating due payment in car loan calculator via excel sheet

  • Third, hit the Enter key. All the data for the new month is visible due to the previous formula using steps.

  • Fourth, use the Fill Handle icon and copy the formulas down to their cells.

Determining due payment to create a car loan calculator

  • Therefore, you will get your entire calculation on the table like the following image.

📕 Read More: Create and Download Late Payment Interest Calculator in Excel


Step

Step 6: Analyzing Total Payment

After the detailed calculation, you should know the total interest you are paying during the loan period. This is the final step of creating a car loan calculator in an Excel sheet. From the total interest amount, you can get the total amount you finally paid altogether from the car loan calculator in the Excel sheet.

⬇️⬇️ STEPS ⬇️⬇️

  • Initially, select cell F16.
  • Next, enter the following formula on the cell.
=SUM(D9:D14)
  • Then, hit the Enter key.

  • Again, select cell F17.
  • Here, enter the following formula on the cell.
=B6+F16
  • Finally, hit the Enter key. You will get your own customized car loan calculator in an Excel sheet like the following image.

Analyzing total payment in a car loan calculator for excel


📄 Important Notes

🖊️  In case of a duration of 12 months or more, you need to add APR with the entire calculation. APR will change your interest rate.

🖊️  During preparing the table, you need to format all the cells as currency. You can change the currency system from the custom format.

🖊️  When, you copy a formula from this article, Double quotes (“ ”) might get mixed by your device. Try to retype these keys from the formula bar.


📝 Takeaways from This Article

The article lets the readers understand the steps that need formulas and correlation between cells.

📌  You need to learn about the car loan system. Using the calculator, you can optimize according to your requirement.

📌  For the calculator, you need to calculate principal, interest, EMI, and total amounts one by one.


Conclusion

To prepare a car loan calculator, six steps are important. You can calculate the Interest, EMI, Payment, Due Payment, and finally Total interest and Total Payment. In case of further queries, readers are requested to leave a comment for the author. The author will try their best to come up with a suitable solution. Follow ExcelDen to get more access to solutions regarding your Excel problems.


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Farihat

Farihat

An Excel enthusiast who wants to share and loves to solve Excel problems. I try to explore available options to guide readers to the maximum ways how they can solve. The world is limitless, and so are the problems in it. Let's help each other to grow. I would love to hear feedback and queries from readers. You can visit my LinkedIn for further information.

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