How to Calculate an Original Loan Amount in Excel

You can easily calculate the original loan amount using Excel if you have the interest rate, periodic payment, and the given loan term available.  For this purpose, you can use the present value function or simply PV.

Calculate original loan amount in Excel

FORMULA

The general formula used to calculate the original loan amount is given below:

=PV(rate,periods,-payment)

Figure 1. Calculate the original loan amount

From figure 1 it is clear that from having interest, periodic payment and periods per year, we can Calculate the original loan amount. The formula used in C11 is as follows:

=PV(C6/12,C8,C7)

How the formula works

The formula works on the basis of PV function which requires three major aspects i.e.i-e interest, monthly payment and the total term of months.

The interest rate is divided by the number of periods per year which is given by

C6/12

By setting these inputs and using the right formula, the original loan amount is calculated which is $5,299.

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