This is your monthly interest which is the rate divided by 12 months. In order to calculate your monthly loan payment youll need to use the Excel loan payment formula for the PMT function. If the loan term is listed in years multiply the number of years by 12 to find the number of months.
The formula to use when calculating loan payments is M P J 1 - 1 J-N.
You can use our mortgage calculator to calculate your monthly payment the easy way or you can do it yourself if youre up for a little math. The loan amount the interest rate and the term of the loan can have a dramatic effect on the total amount you will eventually pay on a loan. Compare different scenarios and determine what you can afford today. Heres how to calculate monthly mortgage payments in Excel.