We use the NPER function in combination with the PV, PMT and RATE functions to calculate the number of installment paid within a period. This article will walk through the process.
Figure 1 – Final result of the NPER function using the PV, PMT, and RATE function.
=NPER(rate, pmt, pv)
Setting up the Data
We will set up our table as shown in figure 2, with hypothetical players including the Loan amount, interest rate, Monthly payment, compounding periods. We intend to get the number of periods for loan or investment.
- We will place the parameters in the range: B5:B8.
- The figures will be contained in Column C
- The result will be named “Period (terms in months)” and displayed in Cell B10 and C10
Figure 2 – Setting up the Data
Using the NPER function
- We will click on Cell C10
- We will insert the formula below into Cell C10
Figure 3 – Using the Excel NPER function
- We will press the enter key.
Figure 4 – Result of using the NPER function
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