Calculate your payments instantly without opening a spreadsheet. Our mortgage calculator in excel alternative uses the exact same PMT financial functions to give you precise results, and we’ll even show you the formula syntax to use in your own workbooks.
mortgage calculator in excel
mortgage calculator in excel Formula
To perform this calculation in Microsoft Excel yourself, you would use the PMT function. This tool replicates that logic exactly.
=PMT(rate/12, nper*12, -pv)
Where:
rate = Annual Interest Rate
nper = Number of Years
pv = Present Value (Loan Amount)
Variables
- rate: The interest rate for the loan. Excel requires the periodic rate (monthly), so we divide the annual rate by 12.
- nper: The total number of payments for the loan. We multiply years by 12.
- pv: The present value, or total amount that a series of future payments is worth now; also known as the principal.
Related Calculators
- Google Sheet Mortgage Calculator
- Amortization Schedule
- Financial Mortgage Calculator
- Mortgage Payoff Calculator
What is a Mortgage Calculator in Excel?
A mortgage calculator in excel is a spreadsheet model used to forecast loan repayments. It is highly favored by financial analysts and accountants for its ability to handle complex “what-if” scenarios, such as changing interest rates or irregular extra payments.
However, creating one from scratch requires knowledge of financial syntax (PMT, IPMT, PPMT). Our tool provides a quick, error-free way to get the same numbers without opening the software.
How to Calculate Mortgage in Excel (Example)
- Open Excel: Start a new workbook.
- Input Data: Cell A1: Rate (6.5%), Cell B1: Years (30), Cell C1: Loan Amount (300000).
- Enter Formula: In any empty cell, type:
=PMT(A1/12, B1*12, -C1). - Result: The cell will display the monthly payment. Ensure you include the negative sign before C1 to get a positive result.
Frequently Asked Questions (FAQ)
In financial accounting, payments are considered cash outflows, which are represented as negative numbers. To view it as a positive cost, place a minus sign before the loan amount (PV) in your formula.
Yes, but the PMT function calculates a fixed payment. To model extra payments, you need to build an amortization table using IPMT and PPMT functions row by row.
Yes. The function syntax =PMT(rate, nper, pv) is identical in both Microsoft Excel and Google Sheets.
For interest-only, you don’t use PMT. You simply multiply the loan amount by the monthly rate: =LoanAmount * (AnnualRate/12).