## How do you calculate mortgage payment?

Principal: The amount of money you borrowed for a loan. …Interest: The cost of borrowing money from a lender. …Property taxes: The yearly tax assessed by the city or municipality on a home that is paid by the owner. …Mortgage insurance: An additional cost of taking out a mortgage, if your down payment is less than 20% of the home purchase price. …More items…

## What is the formula for calculating interest on a mortgage?

Identify the sanctioned loan amount, which is denoted by P.Now figure out the rate of interest being charged annually and then divide the rate of interest by 12 to get the effective interest rate, which is denoted by r.Now determine the tenure of the loan amount in terms of a number of periods/months and is denoted by n.More items…

## How to calculate monthly mortgage payment in Excel?

Using Excel formulas to figure out payments and savingsFigure out the monthly payments to pay off a credit card debt. …=PMT (17%/12,2*12,5400) The rate argument is the interest rate per period for the loan. …Figure out monthly mortgage payments. …=PMT (5%/12,30*12,180000) The rate argument is 5% divided by the 12 months in a year. …Find out how to save each month for a dream vacation. …More items…

## How do you calculate a loan payment in Excel?

The outstanding balance due will be entered in cell B1.The annual interest rate, divided by the number of accrual periods in a year, will be entered in cell B2. …The number of periods for your loan will be entered in cell B3. …More items…