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Estimate mortgage payment

To calculate an estimated mortgage payment in Excel with a formula, you can use the PMT function. In the example shown, the formula in C11 is: =PMT(C5/12,C6*12,-C9) With the inputs in the worksheet as shown, the PMT function determines a monthly payment of 2,994. This is the calculated monthly payment for a 30-year mortgage with an interest rate of 7% and a loan amount of $450,000. If any of the assumptions in column C are changed, the payment will recalculate automatically. Note: also see this formula to calculate a mortgage payment schedule.

April 14, 2025 · 1 min · 66 words · Travis Grimes

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The mortgage payment is then calculated based on the loan amount in cell C9.

The PMT function assumes fixed periodic payments and a constant interest rate.

Putting it all together, Excel evaluates the formula like this:

The PMT function returns 2,994.

Excel formula: Mortgage payment schedule