I am trying to use an excel work sheet to figure out what the monthly interest and principal is from the over all mortgage payment and show the reduction in the overall loan but for some reason the amount of the interest and the principal does not equal what the monthly over all payment is and it's driving me crazy. What am I doing wrong? a perfect example would be: monthly payment is $800.00, the interest for that payment is showing as $445.50, but the principal amount is showing as $367.62. the principal and interest amounts don't even come close to equalling $800.00.
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calculating the principal and interest from a mortgage payment
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Discussion
I agree with queue's advice. Also, if you are having trouble with your currenct Excel template, you can update your question and include that or just search for a loan calculator online and get your numbers from there.
don (rep: 1989) Jul 2, '17 at 11:45 am
Answers
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1.you need more details. Specifically the Intrest rate, Principle amount (initial borrowed amount) and the number of payments. From there you can 'back into' your amount via an amortization schedule. This is needed because your payment amount is usually a 'fixed' amount (unless you have a Variable rate loan). Interest is generally Front loaded ~ meaning you pay the most interest in the early years and less towards the end.. Back to the Payments... depending on the payment number the breakdown differs as mentioned previously. Also, there are various Amortization schedules on line, BUT you could create one in excel too. Once you create in excel, you go to the payment date you are looking for and on your amortization schedule you will be abel to see the breakdown of P & I (Principle & Interest).