Calculate mortgage payments, from the interest rate and the number of years for a fixed initial principal value.
The mortgage can be calculated either to reduce the principal value to zero at the end of the term, zero interest with no reduction in principal, or to reduce the principal to a user defined value at the end of the term. The mortgage payments are assumed to be constant for each period. The principal is assumed to compound each period. The total number of periods equals the number of years times the number of periods per year. For monthly compounding interest the number of periods per year equals 12. For annual compounding interest the number of periods per year equals 1. The total number of mortgage payments equals the number of periods. The first mortgage payment is assumed to be made at the end of the first period, with additional mortgage payments at the end of each period. The final payment is assumed to be made at the end of the final period.
The calculation can be used to calculate either the final principal, the initial principal, the number of years, or the value of the mortgage payment. The number of years calculation is not valid for interest only mortgages.
Tool Input
- intype : Compound Interest Type
- kou : User Defined Initial Value
- pu : User Defined Compound Interest Rate
- yu : User Defined Number Of Years
- ru : User Defined Payment Per Period
- motype : Mortgage Type
- knu : User Defined Final Value
- c : Number Of Periods Per Year
Tool Output
- Σi : Total Interest Paid
- Σm : Total Mortgage Payments
- Σp : Total Principal Paid
- I : Compound Interest Rate (Per Year)
- M : Payment Per Period
- Pf : Final Principal Value
- Pi : Initial Principal Value
- Y : Number Of Years
- n : Total Number Of Periods (y * c)