If you're wondering How to Calculate Mortgage in Excel, you're not alone! A lot of people find mortgage payments confusing, but they don't have to be.
In this video, we'll show you how to use the Financial function i.e. PMT function in Excel to calculate mortgage payments. We'll also explain what this function does and how it works. So if you're ready to learn about mortgages in Excel, keep watching!
Table of Content
00:20 Mortgage Payment Using PMT Function
What is Mortgage Payment?
A mortgage payment is a monthly payment that you make to pay off your mortgage. It's calculated by multiplying the mortgage amount by the interest rate.
For example, if you have a $200,000 mortgage and an interest rate of 0.06%, your monthly mortgage payment would be $1200 ($200,000 x 0.006 = $1200).
What is the PMT function used for?
The PMT function can be used to calculate more than just mortgage payments! It can also be used to calculate payments on car loans, student loans, and other types of loans.
It's also important to note that the PMT function can be used to estimate mortgage payments, as it's not always possible to know the exact interest rate and a number of months in a loan.
Can you calculate mortgage payments in excel?
Yes, you can! In fact, there are several ways to do it. One way is to use the PMT function in Excel and another is to calculate online using different tools.
The PMT function calculates monthly mortgage payments based on the amount of the loan, the interest rate, and the number of months in the loan.
The PMT function is:
PMT( loan amount, interest rate, number of months )
loan amount - the amount of the loan
interest rate - the interest rate for the loan
number of months - the number of months in the loan
In the example above, the loan amount would be $200,000, the interest rate would be 0.06%, and the number of months would be 360 (30 years). So the PMT function in this case would be:
PMT( 200000, 0.06, 360 ) = $1155.01
The monthly mortgage payment in this case would be $1155.01.
Watch along the video and practice sheet to download using the link below and browse through different timelines as prescribed below;
That's it for this tutorial on How to Calculate Mortgage in Excel! We hope you found it helpful. If you have any questions, please leave a comment below and we'll be happy to help.