How to create loan amortization interest calculator of Excel template?
In modern times, it’s quite common to loan money from banks to purchase a house, to pay for tuition, or others. As we know, the loan amortization interest usually is much bigger than we think. You’d better clear with the interest before loaning. This article will show you how to calculate the loan amortization interest in Excel, and then save the workbook as loan amortization interest calculator of Excel template.
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Here I will take an example to demonstrate how to calculate the loan amortization interest easily. I loaned $50,000 from a bank, the loan interest rate is 6%, and I plan to repay the loan at the end of every month in coming 10 years.
Step 1: Prepare a table, enter the row headers as the following screen shot shown, and input your original data.
Step 2: Calculate the monthly/total payment and total interest with following formulas:
(1) In Cell B6 enter =PMT(B2/12,B3*12,B4,0,IF(A5="End of Period",0,1)), and press the Enter key;
(2) In Cell B7 enter =B6*B3*12, and press the Enter key;
(3) In Cell B8 enter =B7+B4, and press the Enter key.
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Step 3: Format the table as you need.
(1) Select the Range A1:B1, merge this range with clicking Home > Merge & Center, and then add filling color with clicking Home > Fill Color and specify a highlight color.
(2) Then select Range A2:A8, and fill it with clicking Home > Fill Color and specify a highlight color. See screen shot below:
Step 4: Save current workbook as an Excel template:
- In Excel 2013, click the File > Save > Computer > Browse;
- In Excel 2007 and 2010, click the File/Office button > Save.
Step 5: In the coming Save As dialog box, enter a name for this workbook in the File name box, click the Save as type box and select Excel Template (*.xltx) from drop down list, at last click the Save button.
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- To post as a guest, your comment is unpublished.· 9 months agoI was wrong, the correct equation above is as shown because total payments are shown as negative values. So, you would add B4+B7 because the loan amount, B4, is positive, whereas B7, the total amount paid, is negative. So, all is good as is.
- To post as a guest, your comment is unpublished.· 9 months agoIn Step 2 above, I strongly think that the equation should be B7-B4 to estimate the total interest. B7 is the total payments made (including interest) and B4 is the loan amount (principal borrowed).