Lesson#202: How to Make a Mortgage Calculator in Excel?

A mortgage calculator is a useful tool for home buyers, real estate agents, and mortgage lenders to calculate the monthly payments, total interest, and total payment of a mortgage loan. Excel is a powerful spreadsheet program that can be used to create a wide variety of tools, including a mortgage calculator. Here are the steps to create a basic mortgage calculator in Excel:

1. Open a new Excel document and create a table with the following columns: “Loan Amount,” “Interest Rate,” “Loan Term,” “Monthly Payment,” “Total Interest,” “Total Payment.”
2. In the “Loan Amount” column, enter the amount of the loan for which you want to calculate the monthly payments, total interest, and total payment.
3. In the “Interest Rate” column, enter the annual interest rate for the loan. Be sure to express it as a decimal, for example 4.5% should be 0.045.
4. In the “Loan Term” column, enter the number of months for which the loan is to be repaid.
5. In the “Monthly Payment” column, enter the formula “=PMT(Interest Rate/12, Loan Term, -Loan Amount)” to calculate the monthly payment.
6. In the “Total Interest” column, enter the formula “=IPMT(Interest Rate/12,1,Loan Term,-Loan Amount,0,0)*Loan Term” to calculate the total interest.
7. In the “Total Payment” column, enter the formula “=PPMT(Interest Rate/12,1,Loan Term,-Loan Amount,0,0)*Loan Term” to calculate the total payment of the loan.
8. You can format the cells as currency, by going to the “Home” tab and selecting “Currency” from the Number dropdown.

Easily create a mortgage calculator in Excel by following these steps. It calculates monthly payments, total interest, and total payment of a mortgage loan quickly.

Tips to improve the excel sheet

• You can also include columns to calculate the property tax and insurance. This will give you a more accurate estimate of the total payment.
• You can also use conditional formatting to highlight the total payment when it exceeds a certain amount or the interest rate when it exceeds a certain threshold.
• You can also use charts to visualize the data and make it more understandable.

A mortgage calculator is a useful tool for home buyers, real estate agents, and mortgage lenders. They can use it to calculate the monthly payments, total interest, and total payment of a mortgage loan. Excel is a powerful program that can be used to create this type of tool quickly and easily. With a little bit of creativity, you can customize the spreadsheet to suit your specific needs.

Download the Mortgage Calculator format.