Sometimes we need to calculate gold loan interest in **Excel**. In this article, we will show you how to calculate gold loan interest in **Excel** with 2 easy approaches. We have also included some relevant concerns at the end of this article. So, let’s get started.

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## What Is Gold Loan Interest?

With a gold loan, borrowers must pledge their gold jewelry as security in order to obtain funding from a lender. Due to the lack of a set value benchmark, gold loans are only granted against the cost of the “gold” in the jewelry after subtracting the weight of any stones or embellishments. The borrowers make interest payments on the external financing and repay the principal plus interest at the conclusion of the loan term. The credit account is closed once the whole price and interest have been paid, and they receive their gold jewelry back.

## Learn to Calculate Gold Loan Interest in Excel with These 2 Approaches

Consumers or applicants can use the** Gold Loan Interest Calculator** to determine the monthly payment with the interest rate for the gold loan they intend to take out against their own gold or gold jewelry. Their own gold or gold ornaments must be maintained with the lender as a guarantee or collateral till a loan is paid off in whole and on time. The** Gold Loan Interest Calculator** can assist a borrower in determining the approximate number of payments required to repay the loan. Applicants can test out different interest rates and payback terms given by top financial institutions by downloading the **Gold Loan Interest Calculator**.

While writing this article, “2 Ways to Calculate Gold Loan Interest in **Excel**”, we’ve considered a dataset that contains approximately **5** columns and **12** rows. In this dataset, we added** Gold Unit**, **Present Rate**, **Annual Interest Rate**, **Number of Years**, **Monthly Loan Payment**, **Total Paying Amount**, and **Annual Interest on Loan **to make you better understand. But if you want, you can change the entities and put your own values.

**APPROACH**

### 1. Apply PMT Function to Calculate Gold Loan Interest

If you want to calculate gold loan interest in **Excel **then applying the **PMT **function will be very helpful to you. It is not a very difficult task. We have tried to give a short description to make you better understand.

**PMT(rate, nper, pv, [fv], [type])**

**🔨 Formula Breakdown **

Here,

👉 **rate** is indeed the loan’s yearly interest rate.

👉 The credit period is **nper** (number of years for which the credit is granted).

👉 **pv** stands for primary value, also known as the initial loan sum.

👉 ** Future value (fv)** is an optional term.

👉 **type** determines when the payment is due; this is optional.

You can follow the given steps to achieve the process.

⬇️⬇️ **STEPS** ⬇️⬇️

- Initially, select cell
**E10**. - Secondly, write the following function on that cell.

**=-PMT(D6/24,E6*12,C6)**

**🔨 Formula Breakdown **

Here,

👉 We have considered the **Number of Years **as **2** (**24** months). That’s why we applied the formula of **D6/24**.

- Thirdly, tap
**Enter**.

- Belatedly, select cell
**E11**. - Afterward, write the following function on that cell.

**=E10*24**

- Then press
**Enter**.

- Fifthly, you select cell
**E12**. - Afterward, write the following function on that cell.

**=E11-C6**

- Press
**Enter**. - Finally, you will see the desired result.

Undoubtedly, this is a very easy and handy technique to work on.

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

**APPROACH**

### 2. Using Generic Formula

Using the generic formula is one of the best and easiest ways to calculate gold loan interest in **Excel**. You can achieve this approach easily if you want. You just need to follow the below procedures.

⬇️⬇️ **STEPS** ⬇️⬇️

- Primarily, you need to select cell
**E10**. - Secondly, you need to write the following function on that cell.

**=(((C6*D6/24)*(1+D6/24)^E6))/(((1+(D6/24))^E6)-1)**

- Then tap
**Enter**.

- Belatedly, you have to select cell
**E11**. - Fourthly, write the following function on that cell.

**=E10*24**

- Now press
**Enter**.

- Fifthly, you need to select cell
**E12**. - Afterward, just write the following function on that cell.

**=E11-C6**

- Again tap
**Enter**. - Consequently, you will get the result you wanted to see.

Truly, you can easily do this approach.

**📕 Read More: ****6 Steps to Create Car Loan Calculator in Excel Sheet**

## How to Create Daily Loan Interest Calculator in Excel

Based on the interest rate and total annual loan amount, the daily loan is the sum that you need to pay. **Excel** allows you to design a single daily loan interest calculation. The interest rate and the annual loan balance are the only two things left to enter after that. Based on the provided data, the calculator will immediately compute the daily loan interest amount. You will discover how to quickly and easily make a daily loan interest calculator in **Excel** in this portion.

⬇️⬇️ **STEPS** ⬇️⬇️

- Firstly, select cell
**E6**. - Secondly, put the following formula there.

**=(C6*D6)/365**

- Now you need to tap
**Enter**.

- Using the
**fill handle**icon, drag the formula to the entire column. - Eventually, you will see what you wanted to see.

Indeed, it is a very good approach to calculating daily loan interest in **Excel**.

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

## How to Calculate Interest Rate from EMI in Excel

You’ve come to the correct place if you’re trying to figure out how to compute interest from an **EMI** in **Excel**. We’ll attempt to cover how to compute interest rates from **EMI** in this portion. **EMI** is typically compared to a monthly payment. This is the monthly payment a borrower makes to the lender. This** EMI** affects the interest rate. The interest rate depends on a few other factors as well. However, we’ll go over how to calculate interest rates from **EMI** in this section using the **RATE **function.

**=RATE( periods, -payment, amount)*12**

Now maintain the following steps.

⬇️⬇️ **STEPS** ⬇️⬇️

- Initially, select cell
**F6**. - Secondly, put the following formula there.

**=RATE(D6,-E6,C6)*12**

- Now you need to tap
**Enter**.

- Use the
**fill handle**icon to drag the formula to the entire column. - Finally, you will see what you wanted to see.

Undoubtedly, this is a very easy and handy technique to work on.

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

## 📄 Important Notes

You should be aware of the following things while performing the processes mentioned above:

🖊️ You need to be very careful while using the **Excel **functions.

🖊️ You should be conscious when you intend to define the number of years or installments.

## 📝 Takeaways from This Article

If we summarize the whole article, we have got some points.

📌 Initially, we gave the definition of gold loan interest.

📌 Secondly, we applied the **PMT **function to calculate gold loan interest in **Excel**.

📌 Thirdly, we adopted the generic formula to calculate gold loan interest in **Excel**.

📌 Belatedly, we defined a gold loan interest calculator.

📌 Afterward, we designed a daily loan interest calculator in **Excel**.

📌 Finally, we tried to show you how to calculate interest rates from **EMI **in **Excel**.

## Conclusion

We wish that you would be able to calculate gold loan interest in **Excel** using this article. As several methods have been shown here, you can easily follow which one is best suited for you. If you have any skepticism, feel free to ask me in the comment. In the end, to learn more about **Excel** tactics, we recommend you to visit our website **www.ExcelDen.com**.

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