Finance
Work out total interest paid on a loan
=PMT(B1/12,B2*12,-B3)*B2*12-B3How it works in Excel
- PMT gives the monthly payment.
- Multiplying by the number of months gives everything you pay.
- Taking away the loan leaves the interest.
- This assumes you make every payment on schedule.
- Paying extra early can cut this a lot.
The idea in general
Interest is the price of borrowing: all you pay back, minus what you borrowed.
What I assumed
- The yearly rate is in B1, the years are in B2 and the loan is in B3.
Check the result on your own data before relying on it.