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The NPER function returns the amount of payments of a given amount that must be made, in order to pay back a loan of a given size, and a given interest rate.
By multiplying the 15 years we have to pay back the loan by 12, we get our initial number of 180 monthly payments.
But if we don’t have the option of doing this, we can get the amount by using the NPER function. We’ll write Equals, NPER, and select the rate, payment amount, present value, and future value.
We are given the same value as earlier, but now we have the ability to change the amount we want to pay each period and get the amount of periods it would take to pay back the loan.
For example, if we want to pay 2500 Euros every month, we’ll have paid back the loan in full in just under 35 months, which is less than three years.
In this lesson we have shown how to get the amount of periods needed to pay back a loan using the NPER function.