# Time Value of Money TutorialsTVM Calculations

## How to Calculate a Mortgage or Loan Term — How long will it take to pay back?Tutorial 5

Calculate the term (number of payments) for a conventional loan or mortgage with a specified regular payment amount. All of our financial calculators will calculate the term of a cash flow. What is different about the Ultimate Financial Calculator is that it will also calculate the term after a payment or interest rate adjustment.

This example applies to our online Ultimate Financial Calculator. The C-Value! program for Windows works in a similar way and has a few more features including the ability to save your work.

All users should work through the first tutorial to understand basic concepts about the calculator.

To solve for an unknown term, follow these steps:

1. Set "Schedule Type" to "Loan"
• Or click the [Clear] button to clear any previous entries.
• The top two rows of the grid will not be empty
• Delete the 2nd row by selecting it and clicking on the [Delete] button
2. Set "Rounding" to "Adjust last interest" by clicking on the {Settings} {Rounding Options}
3. In the header section, make the following settings:
1. For "Calculate Method" select "Normal".
2. Set "Initial Compounding" to "Monthly".
3. Enter 5.0 for the "Initial Interest Rate".
4. Create a "Loan" series in row one of the cash flow input area.
1. Set the "Date" to September 1st, 2016
2. Set the "Amount" to 50,000.00
3. Set the "# Periods" to 1
• Note: Since the number of periods is 1, you will not be able to set a frequency.
1. Click on the second row of the cash flow input area. Select "Payment" for the "Series"
1. Set the date to October, 1st 2016 if it isn't already
2. Set the "Amount" to "600.00"
• This tells the calculator that the regular payment will be \$600.00 a month until the loan is paid off.
3. Use the [Tab] key to move to "# Periods". Set it to "Unknown" by typing a "U".
4. Set the "Frequency" to "Monthly"

Your calculator should now look like this:

1. Calculate the unknown. The result is 103