The mortgage calculator for excel is a powerful all-in-one worksheet combining many features necessary for mortgage and loan calculations. You can use it to analyze both variable and fixed-rate mortgage and figure out how much you can save. It can also help you to estimate other regular mortgage related costs.
The beauty of Microsoft Excel is the number of functions its developer has created for users to get the most out of.This means that rather than having to develop a function from scratch,you can use pre-built ones to perform an extensive variety of tasks such as creating your own mortgage calculator.This is just among the numerous financial functions that are available on this program.
How to create a mortgage calculator template in excel
It is crucial to know where your cash is going and how much your payments are each month to make a workable budget. With mortgage repayment being among the most important monthly payments for most households, knowing how to calculate your monthly installments alongside the interest is crucial. This is where a mortgage calculator tool comes in to make your work easier. What’s more, it also makes your mortgage decisions easier and better.
You can easily create a mortgage calculator template in excel to know your payment amounts for your variable or fixed-rate mortgage. The task is as easy as pie and shouldn’t take much time. To do so, follow the instructions given below;
1)Gather Loan Information
Collect existing or valuable loan information. This may include the loan amount, interest rate as well as terms. If the loan is hypothetical, then you need to estimate the interest rate. Bear in mind the final numbers may vary depending on what terms you and your lender agree to upon finalization of the agreement.
2)Go To Excel Worksheet
Get on your computer, click on the ”all programs” button and drag your mouse down to Microsoft Office Excel then right click to open.
3) Start a New Workbook and Set Up a Few Basic Headings
This is a crucial step in creating a mortgage calculator template in excel. Once you open the program it will ask you to start a new workbook which is just a click away. Once the program is running, click in the first cell A1 and enter the heading ”Monthly Mortgage Repayments” .Next off, click into cell address A2 and enter the heading ”Mortgage Amount” .Proceed to cell address A3 and create the heading ”Interest Rate”. Cell address A4 may have a heading such as ”Length of Mortgage Repayment” whereas cell address A5 may have perhaps a heading such as ”Monthly Repayment” or anything of that sort.
4)Enter Your Values Next To the Above Headings
You have created your basic headings in the A cells, now you need to enter values next to each one of them within the correspondent B cells. For example, in this case you can take $200,000 to be your mortgage amount, 10% as the yearly interest rate and 20 years as the length of mortgage repayment.
How to Work Out the Monthly Mortgage Repayment Using This Template
You have now created a mortgage calculator template in your excel. Now you need to use it to work out your monthly repayment. This is a little bit tricky but if you follow the instructions below, it should be simple and fast;
1)Select the Formula
Before you can work out the amount, you need to select the formula which can do your calculation. In this case, the function that is going to be used is called the PMT.
On your workbook, select the function shortcut button. It should be labeled ”FX”. Look for the PMT formula that is if it doesn’t appear on the list. Highlight it then click the ”OK” button.
Make references to the columns in which your values have been keyed in for every field in the ”Function Arguments” window. To do this, click inside the ”Rate” field window then select cell B2 (Interest Rate). The Rate field should derive the details from this cell.Do again for the ”Nper” field by clicking within the field followed by clicking cell B3 (Length of Mortgage Repayment) to prompt the number of periods to be extracted. Do again once more for the ”PV” field by clicking inside the field followed by clicking cell B1 (Mortgage Amount). This should prompt the amount of your mortgage to be extracted for this function.
3)”FV’’ and ’Type’’ Fields
Leave the ”FV” and ”Type” spaces blank in the ”Function Arguments” window. Click ”OK” button to complete the process. Your calculated monthly mortgage payment will be displayed next to the ”Monthly Payment” label.
One thing that people like about this simple yet helpful mortgage management tool is that you can go back and change any one of the values in B cells (the Loan Amount, Length of Repayment and Interest Rate) to calculate what your monthly repayment would be if perhaps the interest rate was to go up or down by a certain percentage. What’s more, it tells you pretty fats whether borrowing huge amounts from the lender is worth it and whether or not you can really afford to repay that mortgage.
Simple yet practical tools such as this can enable you to save a lot of money and help you to see what impact changes in interest rates would have on your budget. It is extremely meaningful to create yourself a mortgage calculator template to work out just what you really can afford more or so in these tough economic times.
Banks and financial institution providing mortgage may hike the amount that you need to pay as a monthly repayment especially if they realize that you 100% rely on their details.So rather than allowing them to steal from you when Excel has everything you need to stop them from doing so,why not create your own mortgage calculator? That extra dollar that these institutions steal from you can be channeled into a proper use.Creating your own mortgage calculator might seem tricky and time consuming yet the truth is it is not. If others were able to succeed creating it why can’t you?