| Computing for mortgage payments is quite | | | | series of future payments is wortho Fv - the future |
| complicated. This is why there are a few ways to | | | | value. The cash value you want to attain after the |
| compute for it. One is using the spreadsheet | | | | paymento Type - Logical value. 1 = payment at the |
| application. | | | | beginning of the period or 0 = omitted |
| Here is how to calculate mortgage payments using the | | | | To get the amount applied to the interest, use the |
| Excel spreadsheet application. | | | | IPMT function. Below are the values to enter.o Rate - |
| First, enter the information below into the topmost cell, | | | | the interest rate for the loano Per - period you want to |
| (which you can change it if you want).o Loan Amounto | | | | find the interest. This should be from one to the |
| Interest Rateo Number of periods | | | | number of periodso Nper - the total number of |
| Next, number each row with each payment. You could | | | | payments to be madeo Pv - the present value. This is |
| use the "fill handle" for large numbers. | | | | the total amount of the series of future payments is |
| Then, create columns with the following information.o | | | | wortho Fv - the future value. The cash value you |
| Starting loan balanceo Paymento Amount applied to | | | | want to attain after the paymento Type - Logical |
| interesto Amount applied to principalo Remaining loan | | | | value. 1 = payment at the beginning of the period or 0 |
| balance | | | | = omitted |
| Now, let's enter the formulas. | | | | To get the amount applied to the principal, subtract the |
| Use the PMT function for the calculation of the | | | | interest computed using Ipmt from the payment. |
| monthly payment. Here is what you need to enter for | | | | Lastly, subtract the principal paid from the loan balance |
| this function.o Rate - the interest rate for the loano | | | | to get your new loan balance. |
| Nper - the total number of payments to be madeo Pv | | | | To get the remaining payments, repeat the above |
| - the present value. This is the total amount of the | | | | steps. |