# How do you calculate the cash loan installment?

Cash loan is absolutely one of the most popular banking products. It happens that we need a small amount to buy a new fridge, finance a holiday trip or sew on a household budget. Then we usually ask ourselves: what will the loan installment be? What determines its height? How to calculate decreasing installments, and how equal installments? Convert the loan installment with us!

## Calculate your cash loan installment: these factors matter!

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Calculating loan installments is a difficult task. There are several things that can affect how high your cash loan installment will be, including:

- number of installments: the more they are, the smaller the installment will be, assuming that the loan size is the same
- type of installments: equal or decreasing installments (equal installments are the most popular)
- interest rate
- the nature of the interest rate: fixed or variable (variable interest entails the risk that the loan installment, if the interest rate increases, is able to increase when the debt is settled)
- the amount for which we take out a loan
- amount and manner of settling the commission: the commission can be included in the total loan amount or added to this sum

## Calculating loan installments in Excel

We already know what matters when it comes to calculating the installment of a cash loan, and how to do it in practice? If you intend to take a regulated loan in equal installments, with a fixed interest rate, and the required commission is added to the sum of this liability, the conversion of loan installments is possible using the PMT function contained in Excel.

## Calculate the cash loan installment using the cash loan calculator

Asking yourself: what installments will I pay, we can also use special cash loan calculators, which will approximate for us the amount of the loan installment with the parameters entered by the user and present a simulation of loan installments. However, it should be noted that calculating loan installments using a similar tool is hypothetical.

SUMMARY: the amount of the monthly loan installment will be determined by a number of factors. We often face the question: how to calculate the installment of a housing loan, cash loan etc. depending on the loan we want to take. Calculating installments is a bank’s task, therefore any questions about their amount should be directed to specialists.

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