10 Free Loan Amortization Schedule Templates in MS Excel

Here we are going to share with you these 10 Free Loan Amortization Schedule Templates in MS Excel format to help you prepare your own schedule quickly. You can also review our posts on Audit Schedule Templates and Appointment Schedule Templates.

Amortization is described as cutting down the amount of money to be paid back that a person owes to another person or a bank in the form of a loan. It reduces with each payment every month. Numerous types of loans, especially loans for buying a car or a house, involve amortization. For the amortization of the loan, the principal payment of the loan, including the interest amount, is first divided into monthly payments.  The principal payment amount is the amount still left to be paid. With the passage of time, the proportion of interest decreases on the amount repaid each month, and the principal amount increases. A table consisting of each and every principle and payment amount of each payment is called as ‘Amortization schedule’.

Following is the step-by-step guideline that would effectively help in scheduling loan amortization:

Step 1: Monthly Principal and Interest Rate Calculation:

The first and foremost requirement of calculating amortization or scheduling it is to write down the total specific amount borrowed and the interest on it in the form of percentage and the term of the loan. Using this information, one can calculate amortization. The interest rate is the annual rate on a loan. For amortization convert the annual rate into the monthly rate of interest since amortization is a monthly calculation by dividing the interest rate by 12 months. After this multiply the principal amount with the monthly rate to get the interest amount of the month. Spread up an Excel sheet for this purpose would help in keeping the data.

Step 2: Calculation of Amortization for Upcoming Months:

Now the principal amount left after paying the amount in the first month, the amount left would be used to calculate the amount of money to be paid in the second month. With each month passing the amount of principal repayment increases from the previous month while the interest rate on this amount decreases.

Step 3: Analyze the Amortization trend of the whole Term of the Loan:

The whole trend must follow a decline in the principal amount originally taken as a loan whereas there must be an increasing rate of principle repayment amount and a reduction in the interest rate on these payments each month. It continues till the end when the principal amount left would be 0.

Step 4: Managing Personal Loans:

Using the knowledge about amortization can help a person to calculate his/ her own debts.

Having a sound knowledge about amortization one saves money by adopting strategies to lower the interest rate on the total amount of loan. It can be achieved by paying as many installments each month as possible. This will help in reducing interest rates on the money.  Using amortization or financial calculators on the internet one can easily calculate the amount of interest one can avoid through extra payments. Once you put all the relevant information about your loan, it will calculate your monthly payments automatically.

Free Loan Amortization Schedule Templates

Here is a collection of 10 free Loan Amortization Schedule Templates in MS Excel format.

As amortization is basically the amount of loan paid regularly in consecutive installments after a specific interval of time such as after every month. It helps to keep a record of the amount paid and the amount still to be paid, the total amount that will go for interest, how and when will the entire loan will be paid, etc. In essence, it tells you exactly all about the payment you have to make for the debt money.