### Author Topic: Mortgage Math  (Read 1275 times)

#### Man The Fire

• Posts: 21
##### Mortgage Math
« on: May 05, 2017, 03:03:11 PM »
I understand that with a mortgage, the early payments are mostly against the loan's interest, while the later payments are progressively against more of the principle. For a given mortgage, how do you calculate the amount of a given payment that will be applied to the interest vs the principle?

#### maizefolk

• Magnum Stache
• Posts: 4997
##### Re: Mortgage Math
« Reply #1 on: May 05, 2017, 03:13:49 PM »
The concept you're describing is the Amortization Schedule. There are a bunch of calculators online (example: https://financial-calculators.com/amortization-schedule), or, with that search term, you can dig into the math behind calculating it.

#### maizefolk

• Magnum Stache
• Posts: 4997
##### Re: Mortgage Math
« Reply #2 on: May 05, 2017, 07:28:22 PM »

#### cakie

• Stubble
• Posts: 143
• Age: 30
• Location: Australia
##### Re: Mortgage Math
« Reply #3 on: May 05, 2017, 07:30:04 PM »
In google sheets, the formula to use is ppmt for principle and ipmt for interest. You can make up your own amortization table like this. I assume the formulas are similar in excel

#### MDM

• Senior Mustachian
• Posts: 10400
##### Re: Mortgage Math
« Reply #4 on: May 05, 2017, 11:24:23 PM »