Amortization loan calculator in excel

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Amortization loan calculator in excel

Stuck on math homework? Ask a tutor for free. How to calculate mortgage payments in Excel With the home loan amortization schedule and additional payment calculator rates We have offered a downloadable Windows application for calculating mortgages for many years, but we have recently had a number of people apply for an Excel spreadsheet that shows loan amortization tables. Our Excel mortgage calculator spreadsheet offers the following features: works offline easily savable allows adding additional monthly payments shows the total interest paid and a month-by-month amortization schedule Microsoft Excel Calculator calculator instructions to use The calculator updates the results automatically when you change input. loan amount - the amount borrowed, or the value of the house after your down payment. interest rate - the loan said APR. For your convenience, we publish the local Los Angeles mortgage rates below to help you see the rates currently available. Term of the loan in years - Most fixed-rate home loans across the United States are expected to amortize over 30 years. Other common domestic lending periods include 10, 15 and 20 years. Some foreign countries, such as Canada or the United Kingdom, have loans that pay off over 25, 35 or even 40 years. payments per year - defaults at 12 to calculate the monthly payment of the loan that depreciates over the specified period. If you want to pay twice a month enter 24, or if you want to pay every two weeks enter 26. Loan start date - the date loan repayments began, usually one month to the day after the loan originated. Optional extra payment - if you want to add an extra amount to each monthly payment, then add that amount here and your loan will be depreciated faster. If you add an additional payment, the calculator will show how many payments you saved over the initial term of the loan and how many years it saved. How to activate your mortgage spreadsheet When you download Excel spreadsheets from the web they download in PROTECTED VIEW. You need to click [Enable Editing] in the yellow banner at the top of the spreadsheet to change the variable amounts. By default, this calculator is selected for monthly payments and a 30-year loan term. A person could use the same spreadsheet to calculate weekly, biweekly or monthly payments on a shorter personal or car loan. Some of our software innovation awards! Since its founding in 2007, our website has been recognized 10,000 other websites. Some of our software innovation prices are listed below: The following table shows locally available mortgage rates that you can use to help calculate your monthly home loan payments. Homeowners may want to refinance while low 10-year U.S. Treasury rates have recently fallen to all-time highs due to the spread of coronavirus leading to an out-of-feeling risk, with other financial rates falling in tandem. Homeowners who buy or refinance at today's low rates can benefit from recent rate volatility. Pay yourself too for your mortgage? Find out what you qualify to check your refinancing options with a trusted lender. Answer a few questions below and connect with a lender who can help you refinance and save today! Excel- 100% UNIQUE EXCEL models get 91% off when you buy all 50-plus models! LIMITED TIME OFFER! Click here All prices are unique and there is no annual or monthly fee for any of the models Buy the full versions of our Excel models to get the Excel file without passwords and no protected cells Our global customer consists of customers in more than 100 countries on 6 continents All issues? Visit our FAQ, I've been using your models for a few years and it's changed my whole life! You're a perfectionist! Just awesome! - Nigel C - South Africa Thank you very much and very good models. - Vinit G - India That's exactly what I'm looking for! Thank you so much for your excellent products! Very appreciated. - Jeroen V - Netherlands Thanks for a great product! - Julie P - Canada Your products have simplified the basics of accounting for small businesses that have just started and entrepreneurs, I love it. As my business grows, I will definitely buy more products from you. Shanelle C - South Africa Thank you so much for your excellent products and all your help! - Sue M - USA Thanks and your formulas are amazing! - Simphiwe M - South Africa It's excellent, thank you very much for an extremely well designed excel sheet. - Dwayne F - United States The tutorial shows how to build a depreciation schedule in Excel to detail periodic payments on a damping loan or mortgage. A damping loan is just a whimsical way to define a loan that is repaid in installments throughout the life of the loan. Basically, all loans are depreciated in one way or another. For example, a loan that is fully depreciated for 24 months will have 24 equal monthly payments. Each payment applies a certain amount to the principal and others to the interest. To detail each payment on a loan, you can set a loan amortization schedule. An amortization schedule is a table that lists periodic payments on a loan or mortgage over time, breaks down each payment into principal and interest, and shows the remaining balance after each payment. How to create a loan amortization schedule in Excel To establish a loan or mortgage amortization schedule in Excel, we will need to use the following functions: PMT calculates the total amount of a periodic payment. This amount remains constant for the duration of the loan. PPMT function - gets the main part of each payment that goes towards the capital of that is, the amount you borrowed. This amount increases for subsequent payments. IPMT function - finds the interest part of each payment that goes towards interest. This amount decreases with each payment. Let's move on to the step-by-step process. 1. Set up the damping table To start, set the input cells where will enter the known components of a loan: C2 - annual interest rate C3 - term of the loan in the C4 years - number of payments per year C5 - amount of the loan The next thing you do is create a depreciation table with labels (period, payment, interest, principal, balance) in A7:E7. In the Period column, enter a series of numbers equal to the total number of payments (1-24 in this example): With all the known components in place, let's move on to the most interesting part - loan amortization formulas. 2. Calculate the total amount of payment (PMT formula) The amount of the payment is calculated with the PMT function (rate, nper, pv, [fv], [type]). To properly manage the different payment frequencies (such as weekly, monthly, quarterly, etc.) frequencies, you need to be consistent with the values provided for the rate arguments and nper: Rate - Divide the annual interest rate by the number of payment periods per year ($C $2/$C$4). Nper - multiply the number of years by the number of payment periods per year ($C $3-$C $4). For the pv argument, enter the loan amount ($C $5). Fv and type arguments can be omitted since their default values work very well for us (the balance after the last payment is supposed to be 0; payments are made at the end of each period). By putting the above arguments together, we get this formula: 'PMT( $C $2/$C 4, $C$3$$C$4, $C$5) Please pay attention, as we use absolute cellular references because this formula should copy to the cells below without any change. Enter the PMT formula in B8, slide it into the column, and you will see a constant payment amount for all periods: 3. Calculate interest (IPMT form) To find the interest portion of each periodic payment, use the IPMT function (rate, par, nper, pv, [fv], [type]): 'IPMT' ($C$2/$C$4, A8, $C $3$$C 4, $C$5) All arguments are the same as in the PMT formula, except by argument that specifies the payment period. This argument is provided as a relative reference for cells (A8) because it is supposed to change depending on the relative position of a line to which the formula is copied. This formula goes to C8, then you copy it up to as many cells as necessary: 4. Find main (PPMT formula) To calculate the main part of each periodic payment, use this PPMT formula: 'PPMT' ($C$2/$C$4, A8, $C$3$3 $C$4, $C$5) The syntax and arguments are exactly the same as in the IPMT formula discussed above: This formula goes to column D, from D8: Tip. To check if your calculations are correct at this point, add the numbers to the Main and Interest columns. The amount must be equal to the value of the Payment column in the same row. To calculate the remaining balance for each period, use two different formulas. To find the balance after the first payment in E8, add the amount of the loan (C5) and the capital of the first period (D8): 'C5-D8 Because the amount of the loan is a positive number and the principal is a negative number, the second is actually subtracted from the first. For the second period and all subsequent periods, up to the previous and main balance of this period: 'E8'D9 The formula above goes to E9, then you copy it into the column. Due to the use of related cellular references, the formula adjusts correctly for each line. There you go! Our monthly loan amortization schedule is complete: Tip: Return payments as positive numbers Since a loan is repaid from your bank account, Excel functions return payment, interest and principal as negative numbers. By default, these values are highlighted in red and locked in brackets as you can see in the image above. If you prefer to have all the results as positive numbers, put a sign less before the PMT, IPMT and PPMT functions. For Balance formulas, use subtraction instead of addition as shown in the screenshot below: Amortization Calendar for a variable number of periods In the example above, we have established a loan amortization schedule for the pre-defined number of payment periods. This unique quick solution works well for a specific loan or mortgage. If you are looking to create a reusable damping schedule with a variable number of periods, you will need to follow a more complete approach described below. 1. Enter the maximum number of periods In the period column, insert the maximum number of payments you will allow for any loan, for example, from 1 to 360. You can take advantage of Excel's AutoFill feature to enter a series of numbers faster. 2. Use IF statements in amortization formulas Because you now have many excessive periods, you must somehow limit the calculations to the actual number of payments for a particular loan. This can be done by wrapping each formula in an IF statement. The logic test of the IF statement verifies whether the number of periods in the current line is less than or equal to the total number of payments. If the logical test is REAL, the corresponding function is calculated; IF FALSE, an empty chain is flipped over. Assuming period 1 is in row 8, enter the following formulas into the corresponding cells and copy them across the board. Payment (B8): 'IF(A8-$C$3-$C$4, PMT ($C$2/$C$4, $C $3$3$C 4, $C$5), ) Interest (C8): 'IF (A8-lt;$C$3-$C$4, 4), IPMT ($C$2/$C$4, A8, $C$3$3$C 4, $C$5), Principal (D8): 'IF (A8-lt;-$C$3-$C $4.PPMT ($C$2/$C$4, A8, $C$3-$C 4,$C$5), ) Balance: For period 1 (E8), the formula is the same as in the previous example: 'C5'D8 For period 2 (E9) and all the following periods, the formula takes this form: 'IF(A9-$C$3-$C 4,4, E8-D9, )Therefore, you have a properly calculated damping schedule and a bunch of empty lines with period after the loan has been paid off. 3. Hide extra period numbers If you can live with a bunch of superfluous time numbers displayed after the last payment, you can consider the work done and skip that step. If you strive to achieve perfection, then hide all unused periods by making a conditional shaping rule that sets the font color to white for all lines after the last payment is made. To do this, select all lines of data if amortization table (A8:E367 in our case) and click on the Home tab ' Use a formula to determine which cells to format. Enter the formula below that verifies whether the A-column period number is greater than the total number of payments: $8-$A $C$3-$C 4 Important Ticket! For the conditional format to work properly, be sure to use absolute cellular references for the duration of the loan and the cell payments per cell year that you multiply ($C $3-$C$4). The product is compared to the period 1 cell, for which you use a mixed cell reference - absolute column and relative line ($A 8). After that, click on the format ... button and choose the white font color. Done! 4. Make a loan summary To check out the summary information about your loan at a glance, add a few additional formulas at the top of your amortization schedule. Total Payments (F2): Sum (B8:B367) Total Interest (F3): Sum (C8:C367) If you have payments as positive numbers, remove the less sign from the above formulas. There you go! Our loan amortization schedule is over and good to go! Download loan amortization schedule for Excel How to make a loan amortization schedule with additional payments in Excel The amortization schedules discussed in the previous examples are easy to create and follow (hopefully :). However, they leave out a useful feature that many loan payers are interested in - additional payments to repay a loan faster. In this example, we will look at how to create a loan amortization schedule with additional payments. 1. Set the input cells As usual, start by setting up the input cells. In this case, let's name these cells as written below to make our formulas easier to read: InterestRate - C2 (annual interest rate) LoanTerm - C3 (term of loan in years) PaymentsPerYear - C4 (number of payments per year) LoanAmount - C5 (total loan amount) ExtraPayment - C6 (additional payment per period) 2. Calculate a planned payment Outside the entry cells, another predefined cell is required for our additional calculations - the amount of the expected payment, i.e. the amount to be paid on a loan if no additional payment is made. This amount is calculated with the following formula: 'IFERROR( --PMT (InterestRate/PaymentsPerYear, LoanTerm-PaymentsPerYear, LoanAmount),) Please pay attention that we put a less sign before the PMT function to have the result as a positive number. To avoid errors in case some input cells are empty, we lock the PMT formula into the IFERROR function. this formula in a cell (G2 in our case) and name this cell ScheduledPayment. 3. Set up the damping table Create a loan amortization table with the headers shown in the screenshot below. In the Period column, enter a series of numbers starting with zero (you can hide the 0-period line later if necessary). If you're trying to create a reusable amortization schedule, enter the maximum possible number of payment periods (0 to 360 in this example). For period 0 (rank 9 in our case), pull the value, which is equal to the initial amount of the loan. All the other cells in this row will remain empty: G9 Formula: 'LoanAmount 4'. Building formulas for the amortization schedule with additional payments is a key part of our work. Since Excel's built-in features do not provide for additional payments, we will have to do all the calculation on our own. Roman In this example, period 0 is in row 9 and period 1 is in row 10. If your damping table starts in another row, be sure to adjust the cellular references accordingly. Enter the following formulas in row 10 (period 1), then copy them for all remaining periods. Planned Payment (B10): If the planned payment amount (called cell G2) is less or equal to the remaining balance (G9), use the scheduled payment. If not, add the remaining balance and interest for the previous month. =IFERROR(IF(ScheduledPayment <=G9, scheduledpayment,= g9+g9*interestrate/paymentsperyear),= )= as= an= extra= precaution,= we= wrap= this= and= all= subsequent= formulas= in= the= iferror= function.= this= will= prevent= a= bunch= of= various= errors= if= some= of= the= input= cells= are= empty= or= contain= invalid= values.= extra= payment= (c10):= use= an= if= formula= with= the= following= logic:= if= the= extrapayment= amount= (named= cell= c6)= is= less= than= the= difference= between= the= remaining= balance= and= this= period's= principal= (g9-e10),= return= extrapayment;= otherwise= use= the= difference.=></=G9,> <G9-E10, extrapayment,= g9-e10),= )= tip.= if= you= have= variable= additional= payments,= just= type= the= individual= amounts= directly= in= the= extra= payment= column.= total= payment= (d10)= simply,= add= the= scheduled= payment= (b10)= and= the= extra= payment= (c10)= for= the= current= period (IFERROR(B10-C10, ) principal (e10) - if the schedule-payment for a ' given' period is greater than zero, return a'smaller' of the two values: 'scheduled' payment -minus'interest' (b10-f10) or 'remaining' balance (g9); MIN (B10-F10, G9), 0), ) Please note that the principal only includes the portion of the regular payment (not the additional payment!) that goes to the loan capital. Interest (F10) If the payment of the calendar for a given period is greater than zero, divide the annual interest rate (called cell C2) by the number of payments per year (called cell C4) and multiply the result by the remaining balance after the previous period; otherwise, back 0. If (IF(B10-0, InterestRate/PaymentsPerYear-G9, 0), Balance (G10) If the remaining balance (G9) is greater than zero, subtract the main portion of the payment (E10) and the additional payment (C10) of the remaining balance after the previous period (G9); otherwise back 0. IFERROR (IF (G9 - G9-E10-C10, Note. Because some of the formulas intersect (not circular

reference!), they may show poor results in the process. So please don't start troubleshooting until you enter the latest formula into your damping table. If all is done correctly, your loan, G9-E10, loans,/G9-E10, Calendar at this point should look like this: 5. Hide the extra periods Set up a conditional set-up rule to hide values in unused periods as explained in this trick. The difference is that this time we apply the white font color to the lines in which total pay (column D) and balance (column G) are equal to zero or empty: 'AND(OR($D 9-0, $D 9), OR ($G 9-0, $G 9) Here, all lines with zero value are hidden from view: 6. Make a loan summary As a final touch of perfection , you can provide the most important information on a loan using these formulas: Expected number of payments: Multiply the number of years by the number of payments per year: 'LoanTerm'PaymentsPerYear Actual number of payments: Count the cells in the Total Payment column that are above zero, starting with period 1: 'COUNTIF (D10:D369,' Total additional payments : Add cells in the Additional Payment column, beginning with period 1: SUM (C10:C369) Total interest: Add the cells in the interest column, starting with the period 1: SUM (F10:F369) Optional, hide line 0, and your loan amortization schedule with additional payments is made! The screenshot below shows the end result: Download the loan amortization schedule with additional payments Amortization Excel calendar model To make a first-rate loan amortization schedule in no time, make use of the integrated Excel models. Just go to File New, type amortization calendar into the search box and choose the model you like, for example, this one with additional payments: This is how you create a mortgage loan or amortization calendar in Excel. Thank you for reading and I hope to see you on our blog next week! Downloads available Amortization Schedule Sample Workbook Workbook

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