# How to Calculate Mortgage Payment in Excel

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To compute the Mortgage payment, the best way is to design a **Mortgage Calculator** with details of payment. To design a Mortgage Calculator, you need to follow the **following** steps:

**In a new Sheet of excel,**In the very first column, type**Loan Amount**(Principal), Annual Interest, Payment in year and No of years. You will get something like this:

**For Total Payments use formula,**Payments per year * Number of years. In making**calculator**we have value of**Payments**per year in B3 and No of years in B4. So we will use formula “” in B5.*=B3*B4*

**Now in another cell of A column,**type**Mortgage Payment**to compute actual mortgage value

**Now in cell adjacent**to Mortgage Payment, we will use**PMT**formula. This**Formula**is used to calculate the payment for a loan based on constant payment and**constant interest**rate.

**Now to construct**PMT formula

- First we need to input value of
**Interest**according to**Payment**Cycle. We can get the desired result by dividing the Annual Interest by Payment per year that is, according to*B2/B3***above picture.** - Then we need total
**payments,**which we derived in cell*B5.* - Then at last, we need present value that is
**Loan amount**or principal. We have such amount in Cell*B1.* - After this we will use the following
**formula**in cell B6:

“”*=PMT(B2/B3,B5,B1)*

**Calculator is fairly**constructed and now we just need to**enter**the values and compute the**mortgage payment**also known as EMI.

**Tips:**

- Always use percentage sign after writing
**annual interest,**otherwise calculator might not work. - Don’t panic on
**getting Payment**mentioned with Red Text showing some**negative value,**because it is the general format in which Answer is shown.

Always use this calculator if loan is charged on Simple interest. This formula doesn’t work with loans **charging compounded.** For this you need to **convert compound** interest rate into simple interest rate.

### How do you calculate PMT in Excel?

**Excel PMT**Function- Summary.
- Get the periodic
**payment**for a loan. - loan
**payment**as a number. - =
**PMT**(rate, nper, pv, [fv], [type]) - rate – The interest rate for the loan.
- The
**PMT**function can be used to**figure out**the future payments for a loan, assuming constant payments and a constant interest rate.

### How do you calculate a mortgage payment on a calculator?

**Calculating**Your

**Mortgage Payment**

To figure your **mortgage payment**, start by converting your annual interest rate to a monthly interest rate by dividing by 12. Next, add 1 to the monthly rate. Third, multiply the number of years in the term of the **mortgage** by 12 to **calculate** the number of monthly **payments** you’ll make.

### What is the formula for calculating monthly payments?

### How much income do I need for a 200k mortgage?

**How much income**is

**needed for a 200k mortgage**? A $200k

**mortgage**with a 4.5% interest rate over 30 years and a $10k down-payment will require an annual

**income**of $54,729 to qualify for the loan.

### Can I buy a house making 40k a year?

**year**. The maximum amount for monthly mortgage-related payments at 28% of gross income is $933. ($

**40,000**times 0.28 equals $11,200, and $11,200 divided by 12 months equals $933.33.)

### What house can I afford on 70k a year?

**should**spend between 28% to 36% of your take-home income on your housing payment. If you make $70,000 a

**year**, your monthly take-home pay, including tax deductions, will be approximately $4,328.

### How much is a 200k mortgage per month?

**mortgage**with a 4% interest rate, you’d pay around $954

**per month**.

**Monthly** payments for a $200,000 **mortgage**.

Interest rate | Monthly payment (15 year) |
Monthly payment (30 year) |
---|---|---|

5.00% | $1,581.59 | $1,073.64 |

### How much a month is a 150k mortgage?

**monthly mortgage**payment on a 30-year

**mortgage**might total $716.12 a

**month**, while a 15-year might cost $1,109.53 a

**month**.

### How much a month is a 180K mortgage?

**How much**would the

**mortgage**payment be on a $180K house? Assuming you have a 20% down payment ($36,000), your total

**mortgage**on a $180,000 home would be $144,000. For a 30-year fixed

**mortgage**with a 3.5% interest rate, you would be looking at a $647

**monthly**payment.

### What happens if I pay an extra $200 a month on my mortgage?

**mortgage**, as well as the total amount of interest you will

**pay**, and the number of

**payments**. The

**extra payments**will allow you to

**pay**off your remaining

**loan**balance 3 years earlier.

### What if I pay an extra 100 a month on my mortgage?

**Extra**Each

**Month**

Just **paying** an additional $100 per **month** towards the principal of the **mortgage** reduces the number of **months** of the **payments**. A 30 year **mortgage** (360 **months**) can be reduced to about 24 years (279 **months**) – this represents a savings of 6 years!

### What happens if I make 2 extra mortgage payments a year?

**additional**principal

**payments**will shorten the length of your

**mortgage**term and allow you to

**build**equity faster. Because your balance is being paid down faster, you’ll have fewer total

**payments**to

**make**, in-turn leading to more savings.

### Is it better to get a 15 year mortgage or pay extra on a 30 year mortgage?

**30**–

**year**fixed-rate

**mortgage**, but a

**15**–

**year mortgage**can be a

**good**choice for some. A

**30**–

**year mortgage**can make your monthly payments more affordable. While monthly payments on a

**15**–

**year mortgage**are higher, the cost of the

**loan**is less in the long run.

### Why does it take 30 years to pay off $150 000 loan even though you pay $1000 a month?

**does it take 30 years to pay off $150,000 loan**,

**even though you pay $1000 a month**?

**Even though**the principal

**would**be

**paid off**in just over 10

**years**, it costs the bank a lot

**of**money fund the

**loan**. The rest

**of**the

**loan**is

**paid**out in interest.

### Can I pay my 30-year mortgage in 15 years?

**pay**off

**your mortgage**faster include:

Adding a set amount each month to **the payment**. Making one extra monthly **payment** each **year**. Changing **the loan** from **30 years** to **15 years**. Making **the loan** a bi-weekly **loan**, meaning **payments** are made every two weeks instead of monthly.

### Is it worth refinancing from 30 to 15-year mortgage?

**Refinancing**from a

**30**–

**year**, fixed-rate

**mortgage**into a

**15**–

**year**fixed-rate note can help you pay down your

**mortgage**faster and save lots of money on interest, especially if rates have fallen since you bought your home. Shorter mortgages also tend to have lower interest rates, resulting in even more savings.

### Is it worth refinancing to save $100 a month?

**Saving $100**per

**month**, it would take you 40

**months**— more than 3 years — to recoup your closing costs. So a

**refinance**might be

**worth**it if you plan to stay in the home for 4 years or more. But if not,

**refinancing**would likely cost you more than you’d

**save**. Negotiate with your lender a no closing cost

**refinance**.

### Is it worth refinancing a 15-year mortgage?

**Refinancing** to a **15**–**year mortgage** can allow you to own your home free and clear faster and save money on interest. However, there are upfront costs and higher monthly **mortgage** payments that come with it.

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