# need a function to calculate a mortgage payment

1. ## need a function to calculate a mortgage payment

Does anyone have a function to calculate a amortized mtg payment. I tried to
use the pmt function, and it came out all wrong. Have tried many different
iterations of the numbers, and they still do not come out to be same as my
Loan Officer Point software indicates the answer should be.

I need to put this function calulation in an excel spreadsheet.

Thanks

2. ## Mortgage Formula

Thing to keep in mind with functions like PMT. Cash outflows have a negative sign ;cash inflows have a positive sign. As such, the result of a typical PMT formula will give you a negative number...and that is okay.

So, if you have a mortgage payment on a 30 year \$100,000 loan at 5% interest, you could calculate the payment as follows:

=PMT(0.05/12,30*12,100000)
NOTE - The 12's are to make everything calculated monthly instead of yearly.

The answer is \$536.82 per month. If that still seems off, then it could be because the Loan programs wants the payment due at the beginning of the month instead of the end of the month. If that is the case, try the formula like this:

=PMT(0.05/12,30*12,100000,0,1)...the 1 at the end tells Excel the payment will be made at the beginning of the month instead of the end (and as such, slightly less interest).

Hope that helps!

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