![]() ![]() By default, these values are highlighted in red and enclosed in parentheses as you can see in the image above. That's it! Our monthly loan amortization schedule is done:īecause a loan is paid out of your bank account, Excel functions return the payment, interest and principal as negative numbers. Due to the use of relative cell references, the formula adjusts correctly for each row. The above formula goes to E9, and then you copy it down the column. To find the balance after the first payment in E8, add up the loan amount (C5) and the principal of the first period (D8):īecause the loan amount is a positive number and principal is a negative number, the latter is actually subtracted from the former.įor the second and all succeeding periods, add up the previous balance and this period's principal: To calculate the remaining balance for each period, we'll be using two different formulas. The sum should be equal to the value in the Payment column in the same row. To check whether your calculations are correct at this point, add up the numbers in the Principal and Interest columns. This formula goes to column D, beginning in D8: The syntax and arguments are exactly the same as in the IPMT formula discussed above: To calculate the principal part of each periodic payment, use this PPMT formula: This formula goes to C8, and then you copy it down to as many cells as needed: This argument is supplied as a relative cell reference (A8) because it is supposed to change based on the relative position of a row to which the formula is copied. To find the interest part of each periodic payment, use the IPMT(rate, per, nper, pv,, ) function:Īll the arguments are the same as in the PMT formula, except the per argument that specifies the payment period. Please pay attention, that we use absolute cell references because this formula should copy to the below cells without any changes.Įnter the PMT formula in B8, drag it down the column, and you will see a constant payment amount for all the periods: Putting the above arguments together, we get this formula: The fv and type arguments can be omitted since their default values work just fine for us (balance after the last payment is supposed to be 0 payments are made at the end of each period). ![]()
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