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:

1. 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:
1. 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 “=B3*B4” in B5.
1. Now in another cell of A column, type Mortgage Payment to compute actual mortgage value
1. 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.
1. 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 B2/B3, according to 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)
1. 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
1. Summary.
2. Get the periodic payment for a loan.
3. loan payment as a number.
4. =PMT (rate, nper, pv, [fv], [type])
5. rate – The interest rate for the loan.
6. 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?

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.

### 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?

Example. Take a homebuyer who makes \$40,000 a 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?

According to Brown, you 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?

For a \$200,000, 30-year 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?

At a 4% fixed interest rate, your 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?

The additional amount will reduce the principal on your 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?

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?

Making 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?

Most homebuyers choose a 30year fixed-rate mortgage, but a 15year mortgage can be a good choice for some. A 30year mortgage can make your monthly payments more affordable. While monthly payments on a 15year 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?

Why 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?

Options to 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 30year, fixed-rate mortgage into a 15year 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?

The Bottom Line: Affording Less Debt Is Best

Refinancing to a 15year 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.