How to Calculate Monthly Home Loan Repayment?

The calculation for monthly home loan repayment is different than the hire purchase or personal loans. It is based on principle loan balance (reducing balance) instead of total loan, which normally used in hire purchase or personal loan.

The advantage of principal loan balance over total loan is the total interest (profit) paid to the bank getting lesser as times go by.

For those who like to calculate the monthly home loan repayment on your own, you may use the following formula,

Alternatively, you may want to use an online home loan calculator.

Formula for Monthly Repayment


P = Loan Amount
i = monthly interest rate
n = loan duration in months

In Microsoft Excel, there is a function on how to calculate home loan monthly repayment easily. Just use the following function

If you find it is tedious to calculate on your own you can use an online home loan calculator. In the online calculator, there are additional information given such as outstanding & principal loan balance. You may need this figures for an early loan settlement.

Leave a Comment

  • SM 23rd November, 2011, 10:40 am

    great tools to calculate home loan repayment.

    however, i would like to request so that the Loan Amount column to be editable since Loan Amount is not necessarily equal to Purchase Price x MOF.

    Loan Amount = Purchase Price x MOF + MRTA + Legal + etc is more accurate i think. (at least in my case)

  • 23rd November, 2011, 12:54 pm

    SM, I will add MRTA & others column. I think that should solve your problem. Alternatively you can put in everything in Purchase price & set MOF to 100%.

    As far as I know you can’t include legal cost in loan amount.

  • SM 24th November, 2011, 9:41 am

    Thx 1MDB.. sorry if my request bothering you.

    Last time seems loan cant cover Legal. But now got varies of loan structure. Mine 90% + 10% which cover the legal, MRTA etc. some even got 90% + 10% + 10% for house renovation.

  • 27th November, 2011, 7:47 am

    SM, not to worry.

    Thanks for the information.

  • stanley 13th June, 2014, 11:53 am

    I have plug in all the datas, but the answer is weird, may I know the unit for each data? such as interest rate, in no or %? the power of -n, answer coming out either 0 or error, could you demonstrate an example may be?

    • 13th June, 2014, 12:08 pm

      Do the calculation in Excel. Make sure you have the bracket where it should be. For percentage make sure to include % symbol or put in the figure in decimal.