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.

Still need some help with Excel formatting or have other questions about Excel? Connect with a live Excel expert here for some 1 on 1 help. Your first session is always free.

## Leave a Comment