Excel Lab - Creating Mortgage Calculate and Importing Data Part A - Excel PMT Function PMT function is very useful for calculating monthly payment required to payback a loan or mortgage at a fixed rate. This function require a minimum of three inputs, periodic rate, number of periods, present value or the loan amount. Here is a simple example. Home Loan: 350,000.00 Interest rate: 4.5% Number of years to repay the loan: 25 Note: To calculate monthly payment, we need to find the monthly rate and number of months as shown above. Then it is simply a matter of substituting the values into the payment function, as shown in the formula view below. Part B - CUMIPMT and CUMPRINC function CUMIPMT Cumulative interest payment function allows you to calculate the interest paid for a loan or from an investment from period A to period B. When getting a loan, CUMIPMT function can be used to calculate the total amount of interest paid in the
Education for everyone!