A mortgage is a long-term loan made to assist you in purchasing a home. You have to pay interest to the lender in addition to the principal. The house and the surrounding property act as collateral. However, you need to be aware of more specifics if you want to buy a house. In this article, we will show you how to calculate **monthly mortgage payment** in Excel.

## Monthly Mortgage Payment

What you pay each month to the lender to pay back your loan is known as your monthly payment. Your mortgage loan’s terms will determine how much you pay each month. This comprises both the loan’s interest and principal, which is the real amount owed.

A mortgage is a type of loan that can be used to purchase or maintain a home, a plot of land, or other mortgage lendings. The lender decides to pay the lender on a regular basis, typically in the form of a number of installments that are divided into interest and principal. The asset then serves as loan collateral. Borrowers must ensure they meet a number of requirements before buying a house, including minimal credit rating and down payments. Mortgage applications go through a lengthy underwriting process before settlement. The various mortgage options, including fixed-rate and monthly loans, will be determined by the lender’s needs.

## How to Calculate Monthly Mortgage Payment in Excel: 2 Ways

Here are two convenient ways to calculate your monthly mortgage payment in Excel we will demonstrate to you. So, in the following two ways, you will learn how to calculate** monthly mortgage payment** in Excel utilizing** the PMT function** and applying** VBA Code**. Let’s suppose we have a sample data set for a monthly mortgage calculation.

### 1. Utilizing PMT Function to Calculate Monthly Mortgage Payment

**The PMT function **returns the periodic payment for a loan, which is a financial function. Given the loan amount, the number of repayment periods, and the interest rate, you can use **the PMT function** to calculate the loan’s installments. In this part, we will show you how to calculate** monthly mortgage payment** utilizing * the PMT function *in Excel.

**Step 1:**

- At the start of this section, choose the
cell first to assess the*C8***down payment**. - Here, write down the following formula.

`=C5*C7`

**Step 2:**

- As a result, you will see the
**down payment**in thecell.*C8*

**Step 3:**

- Similarly, select the
cell to evaluate the*C9***Loan Amount**. - Then, note down the following formula here.

`=C5-C8`

**Step 4:**

- Consequently, the
**loan amount will**be visible in cell**C9.**

**Step 5:**

- Now, pick out the
cell for showing the*C12***monthly mortgage payment**. - And for this, write down the following formula with
**the PMT function**in thecell*C12**.*

`=PMT(C6/12,C10*12,-C9,0,0)`

- The syntax of
**the PMT function**is shown below with arguments.

`=PMT(rate, nper, pv, [fv], [type])`

**rate (required)**– This argument represents the interest rate for the loan. Here, cellshows the interest rate of the loan.**C6****nper (required)**– The number of payments for the loan and we apply this argument in cell.**C10****pv (required)**– This argument demonstrates the present value or the total value of all payments. Here, cellconveys this argument with a negative sign.**C9****fv (optional)**– The amount of cash you want to have left over after the final payment. The future value of the loan is taken to be**zero (0)**if it is missing. For this argument, we put a default value as**zero (0)**.**type (optional)**-It identifies the deadline for payment. Here,**zero (0)**is for the end of the period and then**one (1)**is for the beginning of the period. Here, we choose**zero (0)**as for the end of the period.

**Step 6:**

- Lastly, you will get the
**monthly mortgage payment**in thecell below.*C12*

**Read More:** How to Calculate Monthly Payment with APR in Excel

### 2. Applying VBA Code to Calculate Monthly Mortgage Payment in Excel

**VBA** is a programming language that performs a variety of tasks, and different types of users can use it for those tasks. Using the **Alt + F11** keyboard shortcut, you can launch the **VBA editor**. In the last section, we will generate a **VBA code **that makes it very easy to calculate** monthly mortgage payment** in Excel.

**Step 1:**

- Firstly, we will open the
tab.*Developer* - Then, we will select the
command.*Visual Basic*

**Step 2:**

- Therefore, the
window will open.*Visual Basic* - After that, from the
option, we will choose the new*Insert*to write a*Module***VBA code**.

**Step 3:**

- Now, paste the following
**VBA code into**the*Module*. - To run the program, click the “
” button or press*Run*here.*F5*

```
Sub Mortgage_Calculation()
'Declaring variables
Dim loan_amount As Long, interest_rate As Double, Nper As Integer
'Specifying the cell range for variables
loan_amount = Range("C9").Value
interest_rate = Range("C6").Value
Nper = Range("C10").Value
'Using the argument in function
interest_rate = interest_rate / 12
Nper = Nper * 12
'Specifying the cell range for mortgage amount
Range("C12").Value = -1 * WorksheetFunction.Pmt(interest_rate, Nper, loan_amount)
End Sub
```

**VBA Code Breakdown**

- Firstly, we will call our subject as
.*Sub Mortgage_Calculation()* - Secondly, we declare the variable as
.*Dim loan As Long, rate As Double, nper As Integer* - Then, we specify the cell range for every variables as
,*loan = Range(“C9”).Value*and,*rate = Range(“C6”).Value*.*nper = Range(“C10”).Value* - Finally, we specify the cell range for monthly mortgage payments using the Pmt function as
.*Range(“C12”).Value = -1 * WorksheetFunction.Pmt(rate, nper, loan)*

**Step 4:**

- Finally, the
cell below conveys the monthly mortgage payment.*C12*

**Read More: **How to Calculate Monthly Payment on a Loan in Excel

**Download Practice Workbook**

You may download the following Excel workbook for better understanding and practice it by yourself.

## Conclusion

In this article, I’ve covered** 2** handy ways to calculate monthly mortgage payments in Excel. I sincerely hope you enjoyed and learned a lot from this article. If you have any questions, comments, or recommendations, kindly leave them in the comment section below.