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Performing Smart Analytics and AI on GCP: What Needs to Be Created in Data Studio to Display Monthly Car Loan Payments?

By: Author Alex Lim

Posted on

Categories Performing Smart Analytics and AI on GCP

Learn how to display monthly car loan payments in Google Data Studio using calculated fields. Understand why calculated fields are essential for performing custom calculations on your dataset.

Table of Contents

Question

In Data Studio, what needs to be created if you want to display the monthly payment of a car loan from a dataset that only contains the car’s MSRP price and loan interest rate?

A. A tag
B. A calculated tag
C. A calculated field
D. A field alias

Answer

C. A calculated field

Explanation

In Google Data Studio (now Looker Studio), a calculated field is used to create new metrics or dimensions by applying formulas to existing data. Since the dataset in this scenario only contains the car’s MSRP price and loan interest rate, you need a calculated field to derive the monthly payment. This involves performing mathematical operations such as applying the loan formula, which includes the principal amount (MSRP), interest rate, and loan term.

Here’s why a calculated field is necessary:

  • Mathematical Operations: Calculated fields allow you to perform arithmetic operations (e.g., addition, subtraction, multiplication, division) on your existing data.
  • Custom Formulas: You can use financial formulas like the PMT function (commonly used for loan calculations) to compute the monthly payment based on the interest rate, loan term, and MSRP.
  • Dynamic Insights: The calculated field dynamically updates if the underlying data changes, ensuring accurate and up-to-date visualizations in your report.

Steps to Create a Calculated Field in Data Studio:

  1. Open your Data Studio report and navigate to the data source.
  2. Click on “Add a Field” in the data source editor.
  3. Enter a name for your calculated field (e.g., “Monthly Payment”).
  4. Input the formula for calculating monthly payments. For example: Monthly Payment=PMT(Interest Rate/12,Loan Term in Months,−MSRP)
  5. Save the field and use it in your visualizations.

By using a calculated field, you can transform raw data into actionable insights tailored to your specific needs.

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