Amortization Schedule Template Excel & Google Sheets Free Download
To include extra payments in your schedule, create a new column labeled “Extra Payment” and deduct the extra payment from the balance each month. This will give you a more accurate representation of your payments and how they impact the life of your loan. A loan payment schedule usually shows all payments and interest rounded to the nearest cent. That is because the schedule is meant to show you the actual payments. Many loan and amortization calculators, especially those used for academic or illustrative purposes, do not do any rounding.
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Microsoft Excel is a powerful tool that enables you to create financial sheets and calculate loan payments with ease. If you’re planning to borrow money to buy a house or to invest in a business, creating an amortization schedule can help you see how much you will pay in principal and interest over time. An amortization schedule is a table that shows the repayment schedule for a loan, including the total balance, monthly payment, interest, and principal.
Loan Amortization Schedule
For fixed-rate loans, this reduces the balance and the overall interest, and can help you pay off your loan early. But, the normal payment remains the same (except for the last payment required to bring the balance to zero – see below). The amortization schedule is a loan repayment schedule showing all values of payments, interest paid, principal paid, and remaining balance after each payment. Depending on loan amount and tenures, payment per installment is calculated, and a comparison of principal, interest, and remaining balance can be made. This spreadsheet-based calculator creates an amortization schedule for a fixed-rate loan, with optional extra payments.
This might be done by changing the Payment Amount or by changing the Interest Amount. Changing the Payment Amount makes more sense to me, and is the approach I use in my spreadsheets. Optional extra payment – if you want to add an extra amount to each monthly payment then add that amount here & your loan will amortize quicker. If you add an extra payment the calculator will show how many payments you saved off the original loan term and how many years that saved.
Regular updates help maintain financial transparency and support long-term planning. For example, if the interest rate is 5%, enter “0.05” in a cell. The payment frequency can be annual, semi-annual, quarterly, bi-monthly, monthly, bi-weekly, or weekly. Because some of the formulas cross reference each other (not circular reference!), they may display wrong results in the process. So, please do not start troubleshooting until you enter the very last formula in your amortization table.
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In the Period column enter a series of numbers beginning with zero (you can hide the Period 0 row later if needed). This function will start the calculations with D6 (amount borrowed) and scans thru the principal paid column (E10#) and calculates the running total of balance by using the SUM function. The formula uses a combination of principal under a period ahead of the cell containing the principal borrowed. This period begins to change when we copy and drag the cell down.
- A weekly amortization schedule is a special type of amortization schedule that assumes the regular payment is done weekly.
- Because some of the formulas cross reference each other (not circular reference!), they may display wrong results in the process.
- Use the IPMT function to calculate the interest part of the payment.
- As indicated by the brackets, fv and type are optional arguments.
- This ensures clarity and proper documentation for future reference.
To help the understanding and calculation of loan amortization, I have created a user-friendly Loan Amortization Template in Excel format. This template incorporates preset formulas, requiring users to input their specific loan amounts and dates. Subsequently, the template automatically calculates all relevant figures, streamlining the amortization process. Loan Amortization refers to the systematic repayment of a debt over an extended period through a series of scheduled installments. To amortize a loan effectively, the periodic payments must be substantial enough to cover not only the interest that has accrued but also a portion of the principal amount.
If the ScheduledPayment amount (named cell G2) is less than or equal to the remaining balance (G9), use the scheduled payment. Otherwise, add the remaining balance and the interest for the previous month. Because you now have many excessive period numbers, you have to somehow limit the calculations to the actual number of payments for a particular loan. This can be done by wrapping each formula into an IF statement. The logical test of the IF statement checks if the period number in the current row is less than or equal to the total number of payments. If the logical test is TRUE, the corresponding function is calculated; if FALSE, an empty string is returned.
As more payments go toward reducing the principal, equity increases. Borrowers aiming to tap into their home equity for refinancing, home improvement, or investment purposes can use the repayment schedule in excel schedule to determine the optimal time to leverage their accumulated value. The video covers how to create a simple loan calculator (cols A and B in the screenshot above) and how to create a repayment schedule (cols E, F and G above). The other can be used in any version of Excel although if you have Microsoft 365 I recommend using the first method – it’s simpler and more flexible. An amortization schedule is a detailed table that outlines the payment schedule of a loan.
Get the remaining balance
Then you can experiment with other payment scenarios such as making an extra payment or a balloon payment. Make sure to read the related blog article to learn how to pay off your loan earlier and save on interest. We can use PMT & SEQUENCE functions to quickly and efficiently generate the full loan amortization table for any number of years. First, here’s how to calculate the monthly payment for a mortgage. Using the annual interest rate, the principal, and the duration, we can determine the amount to be repaid monthly. Download our free Excel weekly amortization schedule to generate your weekly loan amortization schedule and read the article to learn how to use this template.
- As we need to calculate this value for all the periods, we can use the SPILL RANGE in C10# as the payment_number.
- Borrowers can plan early repayment strategies, ensuring their extra payments are applied correctly.
- Then save the newly created workbook as an Excel template and reuse whenever you want.
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- We can use simple arithmetic formulas like SUM or division (/) to calculate such values.
If a grace period is also given, the time period will increase. Otherwise, the EMI will change during the payoff to adjust the remaining balance. It helps them visualize their home equity growth and assess refinancing opportunities for better loan terms. Individuals with student or personal loans can benefit from amortization schedules to understand repayment timelines and interest costs. By reviewing the schedule, borrowers can explore extra payments, refinancing, or debt consolidation options to manage their financial commitments more effectively. In this template, you will get your amortization schedule with moratorium and grace periods.
We provide tips, how to guide, provide online training, and also provide Excel solutions to your business problems. In this template, you can insert these extra payment inputs and get all the results and charts based on these inputs. You will also see a summary chart displaying the trend for the principal paid, interest paid, and loan balance. If you miss a payment on your loan, it’s important to contact your lender as soon as possible and make arrangements to catch up on your payments.
However, this approach makes the calculations simpler than prorating the interest. Please note that the principal only includes the part of the scheduled payment (not the extra payment!) that goes toward the loan principal. It is also possible to calculate the principal and interest repayment for several periods, such as the first 12 months or the first 15 months. Note that the corresponding data in the monthly payment must be given a negative sign. Loan start date – the date which loan repayments began, typically a month to the day after the loan was originated.
Weekly Amortization Schedule Excel Template
If someone can make some extra payments along with his/her regular payments, s/he will be able to repay the loan quicker which will result in lesser interest to be paid. In this template, you will be able to insert all necessary inputs along with additional payments. In this template, you can insert all your weekly loan inputs and you will find your weekly loan amortization schedule automatically generated. You will find an output summary containing all your important results and a summary chart showing the principal paid, interest paid, and balance over the loan tenure.