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To keep the schedule as neat and organized as possible, you can input the proper labels within only the "A" column. When creating an amortization schedule using Excel, the first step is opening the software and creating a blank spreadsheet. Here are the steps you can use to create an amortization schedule in Excel: 1. Related: What is a Debt to Equity Ratio? With Definition and Examples How to create an amortization schedule in Excel The column shows the balance after either party performs the subtraction calculation. Outstanding balance: After every monthly payment, the borrower or lender subtracts the principal paid from the current loan balance. These payments decrease over the duration of the loan. Interest costs: The column for interest costs tracks the portion of the monthly payments that goes towards the loan interest. Although most loans have various frequencies for repayment, the most common is equal monthly installments. Payment frequency: A schedule of amortization has columns for different details, but the first one contains information on how frequently the borrower makes payments. Regardless of the means of analysis, the schedule table contains the loan details. Loan details: With the combination of the total loan amount, the loan term, and interest rate, the borrower or the lender can perform loan amortization calculations. The details of an amortization schedule are based on the calculations performed on a loan amortization calculator.Īn amortization schedule usually consists of these metrics: Related: A Comprehensive Guide to Straight-Line Amortization What is an amortization schedule?Īn amortization schedule is a detailed table containing the periodic payment plan for a loan. In this article, we describe the meaning of an amortization schedule, and review the steps you can take to create an amortization schedule in Excel. Understanding the concept of amortization and the schedule that professionals use to determine repayment periods can help you understand how borrowing works and help you budget for large debts like mortgages and car loans. An amortization loan requires monthly payments determined by a specific type of schedule that lenders refer to as an amortization schedule. Amortization is one of the many accounting techniques financial professionals use to lower the book value of an intangible asset over time.