How to Calculate Monthly Mortgage Payment in Excel: A Step-by-Step Guide

Calculating your monthly mortgage payment in Excel is easier than you might think. By using built-in functions and following a few simple steps, you can quickly determine what your payment will be for any loan amount, interest rate, and loan term. This guide will walk you through each step, making the process straightforward and stress-free.

How to Calculate Monthly Mortgage Payment in Excel

In this section, we’ll go through the steps needed to calculate your monthly mortgage payment using Excel. By the end, you’ll be able to input your loan details and see exactly what your monthly payment will be.

Step 1: Open Excel

First, open a new Excel workbook. This is where you’ll input your data and perform your calculations.

It’s best to start with a blank slate so that you can organize your information clearly. Make sure your Excel is up-to-date to avoid any compatibility issues.

Step 2: Set Up Your Data

In column A, label cells for "Loan Amount," "Interest Rate," "Loan Term," and "Monthly Payment."

Labeling your cells helps keep everything organized and easy to understand. These labels will serve as references for your calculations.

Step 3: Input Loan Details

Enter your loan amount, interest rate, and loan term in years into the appropriate cells.

For example, if you have a $200,000 loan with a 5% interest rate over 30 years, you’d input those numbers accordingly. Ensure your interest rate is in decimal form, e.g., 5% becomes 0.05.

Step 4: Calculate Monthly Interest Rate

In a new cell, divide the annual interest rate by 12 to get the monthly interest rate (e.g., =B2/12).

This step converts your annual interest rate into a monthly one, which is necessary for accurate calculations.

Step 5: Calculate Total Number of Payments

Multiply the loan term in years by 12 to get the total number of monthly payments (e.g., =B3*12).

This gives you the total number of payments you’ll make over the life of the loan. For a 30-year loan, this would be 360 payments.

Step 6: Use the PMT Function

In the cell labeled "Monthly Payment," use the PMT function to calculate the payment (e.g., =PMT(B4, B5, -B1)).

The PMT function in Excel simplifies the process. It requires the monthly interest rate, total number of payments, and loan amount. Ensure you input the loan amount as a negative number.

Step 7: Format Your Result

Format the cell with your monthly payment as currency for easier reading.

This final step makes your result clear and professional-looking. It helps you quickly understand your monthly obligation.

Once you’ve completed these steps, your Excel sheet will display the correct monthly mortgage payment. You can then use this information to plan your budget and financial future.

Tips for Calculating Monthly Mortgage Payment in Excel

  • Double-check your interest rate: Always convert it to decimal form before using it in calculations.
  • Use absolute references: This can help if you plan to replicate your calculations across multiple cells.
  • Save your work: Make sure to save your Excel file to avoid losing your data.
  • Update regularly: If your interest rate changes, update your spreadsheet to reflect the new rate.
  • Use templates: Many Excel mortgage calculator templates are available online to streamline the process.

Frequently Asked Questions

What if my loan term isn’t in whole years?

You can adjust the loan term in months to fit non-whole year terms. For example, a 15.5-year loan would be 186 months.

Do I need to include taxes and insurance in these calculations?

The PMT function calculates principal and interest only. Taxes and insurance should be added separately.

Can I use this method for different types of loans?

Yes, this method works for any fixed-rate loan. Adjust the input values accordingly.

What if my interest rate changes?

For adjustable-rate mortgages, you’ll need to update your calculations each time the interest rate changes.

Is there a way to calculate bi-weekly payments?

Yes, you can adjust the number of payments and interest rate to bi-weekly terms, but it requires more complex calculations.


  1. Open Excel.
  2. Set up your data.
  3. Input loan details.
  4. Calculate monthly interest rate.
  5. Calculate total number of payments.
  6. Use the PMT function.
  7. Format your result.


Calculating your monthly mortgage payment in Excel doesn’t have to be a daunting task. With a few straightforward steps, you can quickly determine your monthly payment amount. This not only helps you budget better but also gives you a clearer picture of your financial commitment over time.

By following this guide, you’ll become proficient in using Excel for mortgage calculations, making it a valuable tool in managing your finances. Don’t hesitate to explore additional functions and features in Excel to further enhance your calculations. Happy calculating!

Get Our Free Newsletter

How-to guides and tech deals

You may opt out at any time.
Read our Privacy Policy