How to create a mortgage calculator in Microsoft Excel for free!

One of the really cool parts of Microsoft Excel creates the functionality of Microsoft for use. This means that instead of a function to prepare the ground you can use those to create a variety of tasks such as building do to develop your own mortgage calculator. The mortgage or PMT function is just one of many financial functions available.

Okay, so how to build a mortgage> Calculator ...

The first thing we must do, is to start by establishing a few basic headings. So begins from A1, a new workbook and click in the first cell. Enter into cell address A1 the heading - monthly repayment of loans. Amount, cell A3 loan address - - Interest, cell address A4 - from Next, enter the address in the cell A2 of the loan and then in A6 - Monthly Repayment.

In the example, a mortgage calculator, we will use the loan amount,Interest rate and the duration of the loan and calculate the monthly repayment. Ok, so in the appropriate box B1 the value of $ 200,000 and be sure to format the field as a coin. In cell B2, a value of 9.25% and the size of the field as a percentage and then finally give a value for the duration of the loan up to 25. The value that you enter in the length of the loan in years.

Now is the time to create the formula for calculating the monthly repayment. TheFunction that we use for this calculation is the PMT function. The PMT function always returns a negative number, then one of the things we need to do is to convert a positive number, but a little 'later.

There are three arguments that we used for this formula, and are -

= PMT (monthly interest rate, the number of payments, the loan amount)

Presents the monthly interest rate simply the value in B3 and divide it by 12 - B3/12. PMTFunction operates on the basis of the number of payments that go around, so if we make the monthly payments on our mortgage, we are simply the number of years in cell B4 and multiply it by 12 - 12 * B4

This means that the monthly repayment on our mortgage, we enter the following formula to calculate -

= PMT (B3/12, B4 * 12, B2)

Well, as I said before, the PMT function always returns a negative value, so as to become a positive valuejust enter the PMT function with the function of absolute encapsulate as follows -

= ABS (PMT (B3/12, B4 * 12, B2))

Just type the formula in cell B6 and press the Enter key. Now you need to format the cell address B6 as a currency and you can easily do this by pressing the dollar sign on the Formatting toolbar. After entering the formula and press Enter, you should get a result of $ 1,712.76. If you do not get to answer this question, just go back and make sure that youentered the formula correctly.

The interesting part of this mortgage is that you go back and change one of the values ​​in B2, B3 and B4, which determine the loan amount, interest rate and duration of the loan, which should be your monthly mortgage repayments.

The interesting part of this simple tool that tells you very quickly whether borrowing massive amounts from the bank's worth and if we really afford a mortgage.Why not check out what your repayments will be if the interest rate increased by 2 or 3%, can be really interesting to see the impact on your budget.

Simple tools like this can save you thousands of dollars and help you can also see what changes interest rates on your budget. It 'definitely worth the effort to build yourself a spreadsheet of the budget and work out what mortgage you can really afford, especially in these uncertainTimes.

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