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How to calculate monthly mortgage payment in excel using function
In this tutorial you are about to learn how you can calculate monthly mortgage payment in excel using functions. You’ll be able to calculate monthly payment for both payment due at the end of the period & payment due at the beginning of the period.

We are going to use PMT Function and there are a few things you should consider before using it.

The PMT function syntax has the following arguments:

Rate: Required. The interest rate for the loan.

Nper: Required. The total number of payments for the loan.

Pv: Required. The present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv: Optional. The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type: Optional. The number 0 (zero) or 1 and indicates when payments are due.

Consideration:
The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
Remember to divide the annual interest rate by 12 to calculate monthly mortgage payment.

Here goes the function: =PMT (Rate, NPer, PV, Fv, Type)

#Mortgage #Calculator
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