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Calculate monthly repayment

w00519772
w00519772 Posts: 1,297 Forumite
in Mortgages & endowments
Say I have a mortgage of £100,000 over 25 years at an interest rate of 3.25%. How can I calculate what the monthly payment would be?

I realise there are online tools to do this calculation for you. However, I want to calculate it myself on a month by month basis after taking into account overpayments. I am looking for a mathematical formula.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 26 October 2016 at 8:38PM
    the term you are looking for is amortization.

    built in functions in spreadsheets.


    locoblade has a spreadsheet that will probably do the job or be a good basis for your own
  • tacpot12
    tacpot12 Posts: 9,503 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    If you have access to Microsoft Excel, it comes with a loan amortization template that works for mortgages and includes the ability to enter overpayment. If you unprotect the sheet you can see all the formulas.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • SalsaDanca
    SalsaDanca Posts: 434 Forumite
    Part of the Furniture 100 Posts
    In Excel, the function is PMT. It needs three values: the interest rate (divided by twelve to turn it into from annual to monthly), the number of months, and the balance.

    eg.
    =PMT(0.0325/12, 25*12, 100000)

    The result is -£487.32
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