Use the PMT Function to Calculate Mortgage Payments and Cost of Financing

Demo file: www.patreon.com/posts/31817494

The PMT function in Excel can be be used to determine the monthly payment for any fixed-rate loan. By providing information like mortgage (home loan) amount, number of years, and rate, we can calculate the precise monthly mortgage payment. Then, we can determine the cost of financing and perform what-if analysis to see the impact of 15-year mortgages vs 30-year.