[Ridemonkey]

Does anyone know the formula for calculating the monthly payment of a mortgage based on amount borrowed, interest rate, and term in years?

 

[dexterq20]

www.calculator.com

 

[dhtahoe]

Give me numbers!!!

 

[Ridemonkey]

Clarification: I don't need a calculator. I need the formula.

 

[Motionboy2]

No, there are calculators out there, but don't forget HOA's if that applies and mortgage insurance if you don't have 20% etc

 

[Kornphlake]

hp accounting calculator?

Accounting textbook?

 

[Jayridesacove]

http://www.mortgage-calc.com/

 

[Ridemonkey]

Never mind, Freak IM'd me a link while at the same time reminding me I don't know how to use Google. :nuts:

 

[dhtahoe]

http://www.mortgage-calc.com/

That seems pretty accurate

 

[dhtahoe]

Never mind, Freak IM'd me a link while at the same time reminding me I don't know how to use Google. :nuts:

HAHA that's classic.

 

[Kornphlake]

Clarification: I don't need a calculator. I need the formula.

Something like ((principal amount + (principal amount x APR)) x Years)/Months

That doesn't seem to work out right though because when you convert the years to months it cancels the years on the other side of the equation and you get some number divided by 12 without accounting for the number of years. That might put you on the rigth track though.

 

[mack]

Something like ((principal amount + (principal amount x APR)) x Years)/Months

That doesn't seem to work out right though because when you convert the years to months it cancels the years on the other side of the equation and you get some number divided by 12 without accounting for the number of years. That might put you on the rigth track though.

that is right except i think it is

((principal amount + (principal amount x APR))^ (Years/Months)


Its to the power of the years/months. I cant remember the excat forumula, we did it in math class at the begining of the year.

 

[dhtahoe]

You also have to factor in declining principal amount over said 30 years.

 

[mack]

mack-
did you miss the sticky banning you from giving any advice that involves ANY amount of thinking? (ie anything beyond basic functions)

This isnt basic math?


This is what i had written in my notes

P = C (1 + r/n)^nt

 

[axlvid23]

Does anyone know the formula for calculating the monthly payment of a mortgage based on amount borrowed, interest rate, and term in years?

I believe this is what we're all thinking of...I looked up the actual formula because I couldn't remember that booger from 10th grade algebra either.

F=P(1+(r/n)^(n*T)

F=final amount
P=initial amount
R=interest rate
N=Number of compounding periods..(12 times a year)
T=Time(years)

Sorry if someone else did post it correcty, I didn't bother to thoroughly read all the posts,

Alex

 

[JRB]

This is rich. The village idiot gives casanova, the accountant, math advice. hahahaha

*I hope you got what you needed, RM.

 

[Ciaran]

This isnt basic math?
This is what i had written in my notes

P = C (1 + r/n)^nt

Hey, the kid knows more math than I do. Of course I can spell better than him.

 

[reflux]

Psst...there's a reason there are computer programs out there that do this for us...

 

[N8 v2.0]

Does anyone know the formula for calculating the monthly payment of a mortgage based on amount borrowed, interest rate, and term in years?

Is property prices there like they are in SanFran...????

I.E., if you have to ask, you can't afford it?

 

[MTB_Rob_NC]

Excel does it nicely using the function "PMT"

Mortgages are NOT simple interest calculations, since the balance is always declining.

PMT

See Also

Calculates the payment for a loan based on constant payments and a constant interest rate.

Syntax

PMT(rate,nper,pv,fv,type)

For a more complete description of the arguments in PMT, see the PV function.

Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.

Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.

 

[N8 v2.0]

I see interest rates are down in the lower 5's... damn...

Don't forget to add about $180-$200 per month for taxes and insurance.

 

[Rockland]

Amortization is the magic word that no one has mentioned yet.

--> http://ray.met.fsu.edu/~bret/am_derive/derivation.html

 

[Ian F]

Amortization is the magic word that no one has mentioned yet.

Yep, and every mortgage I've seen calculates the interest daily: APR%/365

 

[BillT]

In the Excel PMT funciton, don't forget to divide the interest rate by the number of periods you pay the loan in a year...if you have a 6% loan and pay monthly, the rate is 6% divided by 12. If you don't do that, the calculation gets WAY off.

 

[MTB_Rob_NC]

Amortization is the magic word that no one has mentioned yet.

--> http://ray.met.fsu.edu/~bret/am_derive/derivation.html

Ya except for in my post up there above yours :mumble: Thats what the Excel formula does.

 

[math2014]

Do you want to calculate monthly repayments?

Here is the formula

160000 is the amount borrowed, 6% interest rate, 25yrs repayment. This gives you monthly repayments. The formula is guaranteed, since i teach these stuff at the university.

 

[johnbryanpeters]

...*I hope you got what you needed, RM.

suck-up...

 

[Damn True]

I have a headache now.

 

[math2014]

I have a headache now.

why?

 

[Ridemonkey]

Do you want to calculate monthly repayments?

Here is the formula

160000 is the amount borrowed, 6% interest rate, 25yrs repayment. This gives you monthly repayments. The formula is guaranteed, since i teach these stuff at the university.

Sweet, can you turn that into PHP code for me?

 

[Damn True]

why?

Because I'm not a math teacher like you.

 

[math2014]

Sweet, can you turn that into PHP code for me?

php? what exactly are you after? a program that calculates monthly repayments?

I dont know about php or stuff, but you can ask whatever you want on maths and finance. happy to be helpfull.

DT. no worries man, i get headaches too,

 

[Toshi]

Because I'm not a math teacher like you.

he's not a prof, he's a grad student slave, er, teaching assistant

 

[math2014]

he's not a prof, he's a grad student slave, er, teaching assistant

Not yet, my young padawan.

Well yes i am a teaching assistant, which is not bad... pay/hr is good, but the final salary is bad, 1 yr left and then real money