Loan Amortization Schedule in Excel - FREE Template » Chandoo.org - Learn Excel, Power BI & Charting Online (2024)

First, you need to set up the parameters for calculating loan schedule. We need below information.

• Interest Rate (annualized)
• Loan duration (in years)
• Payments per year (for ex: 12 for monthly, 52 for weekly and 26 for fortnightly)
• Loan amount

For the sake of the example on this page, I am using 5.35% annual interest rate (cell D3), 30 years loan duration (cell D4), 12 payments per year (cell D5) and $100,000 loan amount (cell D6).

First create a range of cells like below to do all the calculations.

To generate all payment periods, we can use the SEQUENCE function below.

For example, if you have 12 payments per year for 30 years, then the sequence function below generates numbers 1 thru 360.

We can use PMT function to calculate the equated payment or installment amounts.

The syntax for PMT function is

=PMT(rate_of_interest, 
number_of_payments, 

amount_borrowed)

In our case, as we have12 payments per year,we need to divide the interest rate by 12 and multiply the number of years with 12. Finally, we want the same amount for all the periods. So our PMT formula will be:

We can use PPMT function to calculate the principal paid at each point of time. The syntax for this is…

=PPMT( rate_of_interest, payment_number total_number_of_payments, amount_borrowed)

As we need to calculate this value for all the periods, we can use the SPILL RANGE in C10# as the payment_number.

Our PPMT formula looks like this:

We can use IPMT function to calculate the interest portion in our schedule. The syntax and logic are same as PPMT.

Here is the IPMT formula to use:

The final formula in our amortization schedule is balance. For this, we can use a variety of Excel formulas. I particularly like using SCAN function for this as this is simple and automatically scales up or down depending on how many payments we make.

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.

Often, you may want to calculate the summary from an amortization table like below:

We can use simple arithmetic formulas like SUM or division (/) to calculate such values.

As you can see, with a 30 year payment of $100,000 loan at 5.35% interest rate, more than half of the payments (50.26%) go towards interest.

While amortization schedules are great to understand and model cashflows (or plan for future payments), they are quite rigid and do not reflect real-world scenarios. Here are a few limitations of this approach.

• Amortization tables assume interest rates stay same for the entire duration.
• They do not cater for excess payment. If you want to prepare an amortization or loan schedule with excess payments, use this template.
• The calculation does not consider any fixed or recurring fees or charges (such as loan administration charge once a year).

Please download my loan amortization schedule template and use it to see the schedule for your data.

If you have an older version of Excel (other than 365), use the “non-365” worksheet to run the calculations.

Other Loan Calculators & Schedules

• If you want to test impact of excess payments on the amortization, try my loan schedule with excess payments calculator.
• Not sure how much you can borrow? See my Interactive Mortgage Calculator with Excel form-controls.