LOAN AMORTIZATION CALCULATOR EXCEL DOWNLOAD

Now, let us see how Excel can calculate Amortization.Ī couple took an auto loan from a bank of $10,000 at the Rate of interest of 10% for a period of 2 years. You can use the following Amortization Formula CalculatorĪmortization Formula in Excel (With Excel Template) Calculation became very easy using Amortization, even in the above scenario. In loans, more prepayment is done will result in less interest as the principal balance will reduce. That means the borrower can request for tenure change where EMI tenure will reduce and his EMI amount will be the same, or he can request a change in EMI where his EMI amount will reduce and tenure will be the same. If any borrower makes the part payment, his amortization schedule changes, and the effect is visible on EMI or tenure.

It gives in-depth details from the beginning till the maturity of the loan. Amortization prepares personal, home, and Auto loan repayment schedules. It creates transparency between the borrower and the lender.Īmortization is calculated for loan repayment.The borrower can check the principal amount outstanding at any point in Time.There are significantly fewer chances of error.

It helps the lender as well as the borrower with systematic repayment.

Significance and Use of Amortization Formula So, the interest paid on the loan is $131,605.2.

ƥ = 0.1 * 100,000 / 12 * Īnd now, to calculate interest paid, we will put value in the interest formula.

Now, we must calculate the EMI amount and interest component paid to the bank.Īmortization is Calculated Using Below formula:

LOAN AMORTIZATION CALCULATOR EXCEL DOWNLOAD

You can download this Amortization Formula Excel Template here – Amortization Formula Excel TemplateĪ salaried person took a home loan from a bank of $100,000 at the Rate of interest of 10% for a period of 20 years.

Loan amortization calculator excel