Mortgage Loan Calculator Spreadsheet

Mortgage Payment Formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (M):

Total Interest:

Total Payments:

Definition: This calculator computes the monthly payment for a fixed-rate mortgage using the standard spreadsheet formula.

Purpose: It helps homebuyers and financial planners estimate mortgage payments and understand loan costs.

The calculator uses the formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Where:

Explanation: This formula accounts for both principal and interest payments over the loan term.

Details: Accurate mortgage calculations help borrowers understand affordability, compare loan options, and plan their finances.

Tips: Enter the loan amount, annual interest rate (as a percentage), and loan term in years. All values must be > 0.

Q1: What's included in the monthly payment?
A: This calculates principal and interest only. Your actual payment may include taxes and insurance.

Q2: How is interest calculated monthly?
A: The annual rate is divided by 12 to get the monthly rate (e.g., 6% annual = 0.5% monthly).

Q3: Does this work for other loans?
A: Yes, it works for any fixed-rate amortizing loan (car loans, personal loans, etc.).

Q4: Why does my payment seem high?
A: Early payments are mostly interest. Use an amortization schedule to see how payments change over time.

Q5: How can I pay less interest?
A: Consider a shorter term, larger down payment, or refinancing at a lower rate when possible.