PMT / Real Estate Agent

Calculate Monthly Payment for Client Budget

I need to show a client what their monthly payment would be for a $350,000 house at current rates.

formula.xlsx
=PMT(B2/12, C2*12, A2)

How it works: The PMT function calculates the payment for a loan based on constant payments and a constant interest rate. For a real estate agent, this is crucial for providing clients with immediate, accurate estimates of their potential monthly mortgage burden. The formula divides the annual interest rate by 12 to get the monthly rate and multiplies the loan term in years by 12 to get the total number of monthly payments. The loan amount is entered as the present value (pv).

Data Setup

Loan Amount Annual Interest Rate Loan Term (Years)
350000 0.065 30

Step-by-Step Guide

1

Enter the 'Loan Amount' ($350,000) into cell A2.

2

Enter the 'Annual Interest Rate' (e.g., 0.065 for 6.5%) into cell B2.

3

Enter the 'Loan Term in Years' (e.g., 30) into cell C2.

4

In an empty cell (e.g., D2), type the formula: `=PMT(B2/12, C2*12, A2)`.

5

Press Enter to see the calculated monthly payment. The result will be a negative number, indicating an outflow of money.

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