An amortization schedule is a list of mortgage or loan installments that indicates how each payment is applied to both the principal and interest. The schedule indicates the remaining sum owing after each payment, so you know how much you still owe. You may use our amortization calculator to construct an amortization plan in Excel, which can handle the sort of rounding required by an official payment schedule. The loan amortization schedule may be used for mortgages, vehicle loans, consumer loans, and business loans. If you are a small private lender, contact us to get the advanced version to generate a payback plan for the borrower.
This spreadsheet-based amortization calculator generates a plan for a fixed-rate loan with optional additional payments.
Begin by inputting the total loan amount, yearly interest rate, number of years necessary to repay the loan, and frequency of payments. Then you may try out other payment situations, such as adding an additional payment or creating a balloon payment.
Payments can be made on an annual, semi-annual, quarterly, bi-monthly, monthly, bi-weekly, or weekly basis. The values are rounded to the closest tenth of a penny. The last payment is modified to zero the debt.
Loan Payment Schedules: The workbook also includes two more spreadsheets for recording basic loan payments. The distinction between the two is based on how unpaid interest is handled. Unpaid interest is applied to the sum in the first (negative amortization).
Interest Rate, Compound Period, and Payment Period
In most cases, the interest rate entered into an amortization calculator is the nominal yearly rate. When generating an amortization plan, however, you apply the interest rate per period in the computations, which is labeled rate per period in the spreadsheet.
Commonly, basic amortization calculators assume that the payment frequency corresponds to the compounding period. The rate per period in this scenario is just the nominal annual interest rate divided by the number of periods per year.