Buying your own apartment is one of the breakthrough moments in our lives. Many people finance a similar investment with a bank loan, so one of the absolutely basic questions that arise in the minds of buyers is the question of the amount of the loan installment.

We often wonder what is the calculation of the loan installment for an apartment, we have doubts as to what installment of the housing loan will be the optimal solution for us and what to do so that the installment for the apartment does not exceed us. Today we will deal with these issues. Calculate the loan installment for an apartment!

## Calculate the housing loan installment – how?

Calculating the loan installment, contrary to appearances, is not that easy. There are special formulas for calculating loan installments, but you have to remember that they are quite complicated. If you are wondering how much the installment loan will amount to, it is necessary to analyze a few basic issues. The conversion of loan installments should take into account, inter alia:

- loan amount
- the amount of the commission (has it been added to the loan amount or is it already in it?)
- the interest rate and its type: fixed or variable?
- loan repayment time: number of installments

How then can you calculate the loan installment? For all the details, please ask the bank whose offer we are analyzing. Calculation of the housing loan installment in Excel, assuming that it is a loan with equal installments, a fixed interest rate and a commission that has been added to its sum, may be based on the PMT function.

The amount of the loan installment for an apartment depends on a number of factors, which is why calculating the amount of the loan installment requires a lot of focus. At the same time, it should be remembered that a loan installment with a variable interest rate, in a situation where it increases, is able to increase at the time of paying this liability.

## Simulation of housing loan installments using the housing loan calculator

Are you wondering what the monthly installment of the housing loan will be? The network includes specialized calculators, installment simulators, created for housing loans, which present an approximate amount of the installment for an apartment under certain assumptions. Typically, home loan calculators require you to provide, for example, loan amounts, property prices, loan periods, installments, and interest rates. However, it is worth remembering that the calculation of the installment with such a tool is only an example. Banks should ask for the amount of installments for specific financial products.

SUMMARY: we often face dilemmas: how to calculate the installment of a consolidation, mortgage, car loan etc. It should be remembered that calculating loan installments is a difficult task, so it is worth relying on the skills of specialists in this case. It is the bank that should provide us with the installment amount and the loan repayment schedule.