Being at the stage of analyzing loan offers, we usually have a race of thoughts in mind that focuses on one question: how to choose the best option? We often wonder what monthly mortgage installment can be borne by our home budget? What exactly is the calculation of the mortgage installment? How to calculate the loan installment for a house or flat? Today we will throw more light on this issue!

## Calculate the mortgage installment yourself!

Calculating installments is the bank’s job. Specialists calculate the mortgage installment, taking into account a number of factors, so all questions should be directed to the service of a particular institution. However, if you want to know approximately how much the installment will be, then you must carefully present all its parameters. What should you remember if you plan to calculate the loan installment? Importance is, among others:

- installment type: fixed loan installment (equal) or decreasing installment
- commission amount and loan amount
- loan interest rate (amount, fixed or variable)
- repayment time (number of installments)

Note: remember that when taking out a loan with a variable interest rate, we must take into account the possibility that the amount of repaid installments will increase when the liability is paid, if the interest rate increases. In the case of commission, when calculating the installment, one should take into account whether it falls within the loan total or has been added to this sum.

Let’s get to the merits: the formula for calculating loan installments is very complex, therefore, if we plan to take out a loan repaid in equal installments, at a fixed interest rate, for which the commission was added to the loan sum, the solution may be to calculate the loan installment in Excel using PMT.

## Calculating the mortgage installment using the mortgage calculator

Simulation of mortgage installments (indicative!) Can also be prepared using dedicated mortgage calculators that are available on the web. Therefore, if you are wondering what mortgage installments we will have to pay, there is an option to use a similar solution. Of course, such a loan installment simulator is based on the data we enter, so we must be as accurate as possible in this respect, and the information obtained with it is hypothetical.

SUMMARY: calculating loan installments is a big challenge, so if you are wondering how much the mortgage installment will be, ask the bank for details, where we should provide the necessary calculations. Self-calculation of the loan installment is possible, among others, using special mortgage calculators, but beware – the information from the bank is always the most important thing and we should base it on it, because the data presented by the calculators are only approximate.

Question: how to calculate the consolidation loan installment, cash or car installment is completely normal. Ultimately, the amount of the installment will affect our home budget.