Free Loan Amortization Spreadsheet
A loan amortization is a common discounted cash flow (DCF) application that consumers encounter in their everyday lives. Amortization schedules apply to all types of financing, including home mortgages, car loans, business loans and low APR credit cards.
Amortization schedules apply to all types of finance loans.
The amortization period of a finance loan usually is defined by a fixed number of regular payments (e.g., 60 monthly payments).
An amortization schedule shows two components:
Interest: the amount of interest only on the finance loan balance; and,
Principal Repayment: the actual reduction in the finance loan balance.
The Loan Amortization Spreadsheet provides a breakdown of payments for any finance loan. Each year's loan payment is divided between principle repayment and interest. The amortization spreadsheet is written in Microsoft Excel and shows the amount of interest and principal paid for each period.
The Finance Loan Amortization Table is simple to use, and requires three user inputs only: initial finance loan balance, amortization period, and interest rate (on a semiannual compound basis).