The Innovative CPA Group has built a library of FREE Excel tools and calculators for you to use, including a Loan Amortization schedule! These comprehensive tools are a great resource to keep you organized when evaluating your finances.
Our Loan Amortization Tool helps depict an amortizing loan where the principal of the loan is paid down over its lifetime according to a schedule of equal payments. Additional payments can be added periodically and will adjust the length of the loan’s lifetime as well as the cumulative interest paid. The tool also includes graphs which provide visual representations of your principal, interest, and remaining balances throughout the loan’s lifetime.
How to use our Loan Amortization Schedule:
1. Fill in all the relevant information in the grey highlighted cells; (Total Cost of the purchased item, any down payments made, additional costs or fees that are included in your loan, the annual interest rate, how many years the loan will live, how many payment periods are within the year, and the start date of the loan). Any cells not highlighted in grey are formula cells and are not to be changed. Changing these cells will break the template and will show incorrect predictions.
2. Once your information is input, the table below will autofill your payment amount for the lifetime of the loan and will calculate an estimated interest amount that will be paid throughout the life of the loan.
3. In order to lower your periodic interest, extra payments will need to be made toward the principal amount. This can be input into the grey highlighted cells in the “Extra Payment” column. Making extra payments will automatically lower the cumulative interest and how long it will take to repay the loan.
*You do not need to input your period payment. Only keep track of extra payments in this column
4. You can keep track of how many payments you’ve made by changing the drop-down list in the far-right column to “Paid”. If you forgot to make a payment you can mark the payment as “Past Due”.
5. As you change information and make extra payments our template will display different graphs showing calculations such as interest savings, number of payments remaining, and the balance of your loan versus the principal and interest amount over the loan lifetime.
You can find this Excel tool and many other free downloadable templates in our Excel Tool Library, under the Resources tab on our website.
Any articles, templates, spreadsheets, calculators or information provided on the Innovative CPA Group website are for reference only. While we strive to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, articles, templates, spreadsheets, calculators, or related graphics contained on the website. Any reliance you place on such information is therefore strictly at your own risk.
If you have any questions regarding this tool, Loan Amortization, or for a detailed discussion, please reach out to your accountant or contact us at 203-489-0612 or fill out our contact form.