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Estimate Monthly Mortgage Payments
Estimate Monthly Mortgage Payments

Powerful math in a simple calculator

Michael Schwabe avatar
Written by Michael Schwabe
Updated this week

Though Asset-Map's inline calculator is provided as a means to calculate quick math so the advisor need not leave the application (see more here), a sophisticated formula such as roughly estimating the monthly mortgage payments is possible using a formula within a value field in Asset-Map platform. Here is the formula:

((r)*P / (1 - ((1 + r)) ^ (-N)))

If you precede the equation with an "=" in a value field, you can derive a rough estimate of what a monthly payment could be. (Of course, there are other considerations like insurance and escrow, to name a few, which aren't considered in Asset-Map.) Multiply the monthly by 12 to get an annualized valued.

Here's an example using the formula:

=((6.5 / 100 / 12) * 200000) / (1 - ((1 + (6.5 / 100 / 12)) ^ (-30 * 12)))

  • r is the monthly interest rate = 6.5% / 12

  • P is the principal = $200000

  • N is the number of monthly payments = 30*12 = 360

  • Tapping "enter" will display $1264 / month in the value field.

Since Asset-Map Platform uses annualized amounts in value fields the monthly dollar amount should be multiplied by 12 to get the annual figure.

Please note: Asset-Map does not calculate amortization. This is a demonstration of the calculator feature within the value fields of Asset-Map Platform only. Accuracy and other compliance considerations must be evaluated by the Financial Professional.

Learn more about other Exciting Features in Asset-Map Platform. Click here!

12/2024

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