Recently we moved houses. And with the house move, came a brand new mortgage. But as a self-employed person with variable income, I find the steady nature of mortgage payments little hard to digest. So I wanted to know what impact it would have on my mortgage if I make arbitrary extra payments. Unfortunately, I couldn’t find such a calculator. So I made a mortgage calculator with extra payments using Excel. Here is a quick demo of the calculator. Read on if you want to know more or download this.
Mortgage Calculator - DEMO
Download the Mortgage Calculator
Click here to download the Excel Mortgage Payments Calculator (updated with money saved calculation)
How to use this Calculator?
Refer to below illustration and click on the hot spots to understand the process. Essentially, there are 5 things you need to specify or look at when using the template.
- Enter your loan amount
- Enter the loan term (in years)
- Enter the interest rate (APR)
- Specify extra payments in the green column at relevant month rows.
- Look at the chart to understand the impact of your extra payments on the mortgage term.
Enter your mortgage details here.
Enter extra payment amount in relevant month rows.
The chart will show the impact!
How to create such a calculator yourself...
This part of the article discusses the process for constructing such a calculator yourself. Read on (or watch the video tutorial) if you are interested.
The key idea is…
Any extra payments you make bring down the outstanding principal of your loan, thus bringing down the “loan term”.
Step 1: Calculate the monthly (or weekly / fortnightly) payment:
Assuming you have the Loan amount, term & APR in three cells E5, E6 & E7, we can use the PMT() function to calculate the periodic payment.
In my case, let’s say loan is $500,000, term is 20 years and APR (Interest rate) is 5.35% per annum.
Then the Monthly payment would be
=PMT(E7/12,E6*12,E5)
Step 2: Set up amortization schedule
As extra payment will bring down the outstanding loan term, we need to set up an amortization table to see the impact clearly.
So, set up a range of 360 months (or longer if you want to cater for longer mortgages). You can use =SEQUENCE(360) to automatically generate all the months.
Related: Read about SEQUENCE and other Dynamic Array functions in Excel.
Your table should look like this:
- Opening Balance is same as loan amount for month=1. For subsequent months, this will same as previous month’s closing balance.
- Effective term is how long it would take you to pay off the mortgage based on the opening balance, and agreed upon monthly payment (calculated in Step 1) and interest rate (Cell E7). We can use NPER function to get the answer here.
=ROUND(NPER($E$7/12,$E$10,$D13),0) will tell us how many months it is rounded. - Principal Paid is the amount of principal paid in each month. We can get this with the PPMT() function. =PPMT($E$7/12,1,E13,D13)
- Extra Payment is the input column where we can type any extra payments.
- Closing Balance is opening balance minus principal paid minus extra payment.
Complete this table with necessary formulas and fill everything down.
Step 3: Your mortgage will end when the “Eff. Term” is 0.
Go ahead and play with the table by typing some values in the “Extra payment” column. You can see the effective term reducing.
We can visualize the impact with a nice chart (requires some extra work) like this:
Do check the download workbook for details on how the chart is setup.
Video Tutorial - I made a mortgage calculator in Excel
Watch below video to understand how I made the mortgage calculator with flexible payments. If you prefer to see it on YouTube, click here.
Looking for an Amortization Schedule instead?
If you want to make a regular amortization schedule with Excel, check out Excel Amortization Schedule template.
More Financial Models with Excel
If you want to learn more about setting up calculators, models or business systems with Excel, check out below tutorials & examples:
Interactive Mortgage Calculator to know how much you can borrow (with Excel)
Sara’s Copy Shop – Break even analysis and what-if modeling in Excel [Videos]
How to embed Excel files, calculators on your website? – Step by step instructions
Doing Cost Benefit Analysis in Excel – a case study
Nest Egg Calculator using Power BI
39 Responses to “11 very useful excel keyboard shortcuts you may not know”
You asked about a favorite keyboard shortcut: I often right click the navigation arrows at the bottom of an Excel workbook to get a list of the worksheets. I can click the one I want without having to scroll left or right.
I regularly use the networkdays(x,y,z) function to show the number of working days between two given dates. To exclude public holidays I reference a list of dates ("z" in the above reference) which I periodically update to reflect upcoming non-working days. To keep the sheet looking tidy for other users, I like to hide this column when I'm done, and then unhide it when I update the sheet.
With 40 separate workbooks to edit, these shortcuts make it a breeze...
? Hide selected column: CTRL+0 [zero]
? Unhide hidden column(s) within selection: CTRL+SHIFT+) [closed parenthesis]
If an "Autofit Selection" keyboard shortcut (not just a key sequence) existed, I'd be as happy as a clam!
you can use Alt+o+c+a to autofit selection
Is there a way to auto arrange the column width as you enter the data. Without a macro
You may use alternative key of hide the selected cell by ---print + H key
Unhide---prnt+U keys
You may use alternative key of hide the selected cell by ---print + H key
Unhide---prnt+U keys
[...] 11 very useful excel keyboard shortcuts you may not know [...]
[...] 11 very useful excel keyboard shortcuts [...]
[...] an Excel Conditional Formatting Rock Star 11 very useful excel keyboard shortcuts 73 Free Designer Quality Excel Chart Templates Tracking mutual fund / Stock portfolios using Excel [...]
Hello Chandoo, thanks for sharing this information. With some of the shortcuts I seem to have difficulties as they do not seem to work on the German keyboard.
Can you maybe verify that those combos are only working with the keyboard setup you are using? What would be a good source to lookup combinations for other layouts?
Regards, 1xoid1
@1xoid1 ... Thanks for visiting PHD and taking timeout to ask your question. Unfortunately all my German can be summarized to one phrase: "guten tag".
I wont be able to help you, but I can request other readers to respond. So if you know German or use German keyboard and can answer 1xoid1's question, then you get a free donut.
Guten Tag 🙂
To Sam Krysiak.
Shortcut to Autofit Selection (assuming you mean autofit columns). If you right click toolbar, click customise. From Commands tab/Categories select Built-in Menus.
In Categories window scroll down and select Columns and drag drop it onto toolbar. Then click the new toolbar Columns button and drag drop Autofit button onto your toolbar (note Autofit for Columns will no longer appear in your menus, only on toolbar).
Remove Columns button from toolbar (if you want to keep clutter down) drag and drop it off of your toolbar.
Close Customise box.
Now to Autofit columns just press "Alt" then "A".
Comment 8 correction - 2nd paragraph should read
"In Commands window...
@1xoid1:
Read the following text as follows: The key ,[;] is the one right to the M on the German keyboard. Here are the differences you have to know when using a German keyboard:
2. Press strg .[:] for inserting the current date (and strg shift .[:] for inserting current time)
3. Press strg ,[;] to copy values from cell above
8. Press strg shift –[_] to apply an outline border
10. Press strg-shift S to activate the font drop down (Schriftgroesse)
11. Press strg-shift G to activate the font size (Groesse)
Number 10 and 11 do not work with Excel 2007 anymore, but strg-shift-P shows the font tab of the cell format dialogue in Excel 2007.
All other shortcuts should work on a German keyboard exactly as Chandoo described them.
More information needed? Download a complete list with all shortcuts for Microsoft Excel in German (for free):
http://www.freeware-download.com/downloaddetails/5655.html
@Chandoo: please do not send a donut, unless you are able to attach one to an email. Otherwise the donut might be able to walk by itself, when it arrives here in Germany...
I forgot to mention:
For all readers using an English keyboard: Chip Pearson offers a comprehensive list of Excel shortcuts on the English keyboard:
http://www.cpearson.com/excel/ShortCuts.aspx
[...] your own keyboard shortcuts in Excel 2007, knowing a few keyboard shortcuts in excel is a huge help. Lyte Byte describes a nifty way to create your own key board shortcuts in [...]
[...] Select a bunch of cells and click on the Sigma symbol on the standard tool bar. Alternatively you can use Alt+= keyboard shortcut. [...]
I do some data entries column A,column B ,Column C , A and B have 10 to 12 digit codes , C has the names ; Kindly suggest me a format or formula for excel to avoid duplication of entries in all the the three columns.
Regards,
Prashant
@Prashant... You can use conditional formatting to highlight duplicate entries in the three columns. That way whenever you type a dupe value in a cell the formatting would highlight the values so that you can avoid the error.
check this post for more on using this way to handling duplicates: http://chandoo.org/wp/2008/03/13/want-to-be-an-excel-conditional-formatting-rock-star-read-this/
If you are looking for a way to remove duplicates from an existing range, you can try one of the various techniques we have described here. Try these tips:
http://chandoo.org/wp/2008/11/06/unique-duplicate-missing-items-excel-help/
http://chandoo.org/wp/2008/08/01/15-fun-things-with-excel/
[...] good alternative (although manual) is to use keyboard shortcuts CTRL + ; or CTRL + : to insert current date and time in the active cell. Since this places the [...]
Your site doesn't correctly work in safari browser
Hi GesyimmeliA: Can you tell me which version of Safari on which OS has this problem. I use Macbook at home and loaded the site quite often in Safari and never seen any layout or content issues. Are you facing any script issues while posting comments or somethings like that ?
Hey Chandoo. Great site. Learning lots.
My favorite Excel shortcut has got to be Alt+Down when over an autofilter drop down. Learning that changed my life. That was one of the last things I needed to use a mouse for. Changed my life.
[...] are a big advocate of keyboard shortcuts. I think learning a handful of keyboard shortcuts can improve your productivity tremendously, [...]
My favourit keyboard shortcut is control and 1 (use the 1 above the letters on the keyboard, not the number pad) for format cells.
Favourite shortcut: alt + shift + right/left arrow for grouping/ungrouping!
[...] Select a bunch of cells and click on the Sigma symbol on the standard tool bar. Alternatively you can use Alt+= keyboard shortcut. [...]
[...] clicking on these: excel keyboard shortcuts, excel mouse tips & tricks, excel productivity tips part 1 & part [...]
Martin Williamson thanks for the autofit tip! You rock.
In order to generate charts/bar graph with a single key:
1. Select the data
2. Press F11
3. Magic.... 🙂
F3 = Paste a Name or the entire list of Names
Crtl + F3 = Name Manager
Crtl + : = Inserts current time.
F12 = Save As
Mistake!
Crtl + Shift + : = Inserts current time.
SIR U R THE BEST PERSON WHO SHARES A WONDERFULL AND IMPORTANT TIPS IN EXCEL. THANKS AND KEEP ROCKING.
How do i hide / unhide a work sheet using the keyboard.
Great!
Other useful excel shortcuts
http://webtutorialplus.blogspot.com/2012/01/excel-quick-tip-useful-encoding-hotkeys.html
input in one cell 1a23bc output in two cell one of 123 and other one is abc how to possible, please help me.
Hey cool shortcuts but excel have more shortcuts then you listet.
i find a big database of supportet shortcuts for Excel 2007 here
http://www.veodin.com/excel-2007-shortcuts/
[...] INTEREST Date with my sheet – 10 tips on using date / time in excel http://chandoo.org/wp/2008/07/29/excel-keyboard-shortcuts/ [...]
Great article with some very useful follow-up comments and tips.
One simple question … how do you vertically align the drop-down filter button in a cell with a larger than normal height?
It’s easy enough to do so with a cell’s contents but the drop-down filter button stubbornly remains at the bottom and I need it at the top!
I’ve looked everywhere and haven’t located an explanation to what I am sure is considered an Excel basic.
Cheers