How to Create Your Own Mortgage Payment Calculator

If you take out a mortgage, it may be difficult to work out just how much you will need to pay each month because of the fluctuating interest rates. Because of this, it is important to stay on top of your mortgage payments and consider creating your own mortgage payment calculator.

You can create your own mortgage payment calculator by using Excel or another spreadsheet program, if you do not have a Windows operating system. Staying on top of this will help you to budget better and will give you an idea of just how much you will have left over each month. It will also help you determine whether you will be able to repay your mortgage loan quicker than you initially thought you would.

You will need to have your loan information to hand as this is the information that you will need to input into your newly created mortgage loan calculator. You do not need to have definite details and you can use this process to create an estimate on a mortgage that you are thinking about taking out rather than using a mortgage payment calculator online.

The interest rate that you are going to need to pay will be needed, along with your loan amount and the length that you are going to be taking the mortgage for. You may need to estimate the interest rates but if you have already taken out the mortgage, you will find that all of the interest rates will be included.

Start with a blank spreadsheet and type in the follow into an empty cell:

=PMT(a/12,b*12, c)

Now you will need to put numbers into where the letters are. These letters are your personal numbers that you will have from your loan information and you will need that to work out what is to be put in the places.

‘a’ is the interest rate that you will need to pay for your mortgage. This is the part that will fluctuate the most but the good news is that it is very easy to make changes to an Excel spreadsheet. You should use the full percentage and not try to work out the amount of interest that you will need to pay each month.

‘b’ is the length of your loan term. This will usually be 30 years but there are a number of factors that will affect this. There are chances that you can take a loan out for 40 years, depending on your age, but there is also the chance that you will only be able to take the mortgage for 10 years. 15, 20 and 25 year mortgages are also usually available.

‘c’ is the total amount of the mortgage that you will need. You should remember that you will need to take off the deposit off the total cost of your home. If you have a higher deposit, you will find that you will not need to borrow as much and it may be worth waiting a few extra years to save up for a home.

When you hit enter, you will find that the total amount appears. The amount will show up in red and with brackets around it; it indicates that you owe the money. Remember that you will also need to add on the cost of your tax and insurance and any other fees due for the loan into your mortgage payment calculator to get the actual amount that you will need to pay.