This formula takes into account the monthly compounding of interest that goes into each payment. Use the outstanding loan balance as the new loan amount. Then in the cell next to Payment per month B5 for instance enter this formula PMT B2B4B5B10 press Enter key the monthly mortgage payments has been displayed.
Enter your interest rate.
This formula takes into account the monthly compounding of interest that goes into each payment. The fixed monthly mortgage repayment calculation is based on the annuity formula and it is mathematically represented as Fixed Monthly Mortgage Repayment Calculation P r 1 rn 1 rn 1 where P Outstanding loan amount r Effective monthly interest rate n Total number of periods months. P B r12 1 r12m 1 r12m - 1. Your lender likely lists interest rates as an annual figure so youll need to divide by.