If you borrow money from banking or lending institutions, you are likely to have an amortized loan. In business, when you say amortization, it means the breaking down or the spreading of the debt into smaller amounts that is periodically paid over a certain period of time. Keeping track of your loan is essential to avoid additional fees and charges.
Utilizing an amortization spreadsheet will definitely help you keep track of your amortization record. It will help you to be able to plan and budget for your needs since you have a record of the monthly due date and payment amount. We have sample spreadsheets laid out below. You may also see our budget spreadsheets.
Sample Amortization Schedule Spreadsheet
Mortgage Amortization Spreadsheet in PDF
Amortization Table Spreadsheet in Excel
Loan Amortization Spreadsheet Format
How Does Amortization Work?
After borrowing money, many people don’t know how much they are really borrowed. All they know is that the monthly payment amount given to them fits their budget perfectly. When you borrow money from banking or lending institutions, they charge you a fee that is called an interest. This fee serves as your payment to them for letting you borrow the money. Here are steps to help you calculate your loan’s amortization. You can also use our Mortgage Amortization Calculators for ease of computation.
- You need to know and gather all the necessary information before you compute your loan’s amortization.
- The next step is to convert the annual interest rate into a monthly interest rate to be able to calculate the monthly amortization rate.
- Multiply the principal amount by the monthly interest rate and the product will be your monthly interest rate amount.
- Now you can compute the monthly amount you will be paying. Subtract the monthly interest amount from the fixed monthly payment amount and the difference will be the principal amount that you will be paying every month.
- Putting all those things together will be the final step. It is best to create a spreadsheet where you put in all the gathered information as well as those you have computed to keep track of your schedule and at the same time be organized.
Amortization Calculator Spreadsheet
Amortization Spreadsheet with Extra Payments
Home Amortization Spreadsheet
Amortization Payment Spreadsheet
Advantages of Amortization
- It makes owning a house or a property affordable.
- It can be found easily as loan amortization is offered by many common lending institutions.
- Offers a clear monthly setup for the borrower.
- It is a simple way to make payments lighter and spread out the payment cost.
- Since the amount to be paid monthly is fixed, it easy to track and it helps you with budgeting.
- The repayment amount is fixed so you will not be shocked on how much you have to pay over a period of time.
Disadvantages of Amortization
- It is usually related to equity.
- You are likely to be paying more than what you borrowed because it comes with interest rates.
- In some cases the interest rate is paid first before the principal amount.
- Amortization also goes against a lot of borrowing principles that are established by consumer advocates.
Before considering getting an amortized loan, you should weigh its advantages and disadvantages. Don’t just listen to hearsay, do your own research and try using amortization spreadsheet samples. The best decisions are made through experience. If you wish to do a home loan, our Payment Calculator Mortgage Samples will be a very useful tool. So don’t leave without downloading.
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