How to make an amortization schedule in excel?

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Creating an amortization schedule in Excel can be a useful tool for individuals or businesses looking to track their loan payments. An amortization schedule breaks down the principal and interest payments over the life of a loan, providing a clear picture of how the loan balance decreases over time. In this article, we will explore the step-by-step process of making an amortization schedule in Excel.

Setting Up the Spreadsheet

To begin, open a new Excel spreadsheet and set up the necessary columns. The key columns for an amortization schedule include “Payment Number,” “Payment Date,” “Beginning Balance,” “Payment,” “Interest,” “Principal,” and “Ending Balance.” You can add additional columns for any additional information you may want to include, such as extra payments or fees.

Calculating the Payment

The first step in creating an amortization schedule is calculating the payment amount. This can be done using the PMT function in Excel. The PMT function requires inputs such as the interest rate, the number of periods, and the loan amount. By referencing these inputs in the PMT function, Excel will calculate the payment amount.

Populating the Payment Number and Payment Date

Once you have calculated the payment amount, you can populate the “Payment Number” and “Payment Date” columns. The “Payment Number” column should start with 1 and increment by 1 for each subsequent payment. The “Payment Date” column can be populated by adding the appropriate number of months to the loan start date.

Calculating the Interest

To calculate the interest for each payment, you will need to reference the previous period’s ending balance, the interest rate, and the number of periods per year. Multiply the previous period’s ending balance by the interest rate and divide by the number of periods per year to get the interest for the current period.

Calculating the Principal

The principal payment for each period can be calculated by subtracting the interest payment from the total payment amount. This represents the portion of the payment that goes towards reducing the loan balance.

Calculating the Ending Balance

The ending balance for each period can be calculated by subtracting the principal payment from the previous period’s ending balance. This will give you the remaining loan balance after each payment.

Repeating the Calculations

To create the full amortization schedule, you will need to repeat the interest, principal, and ending balance calculations for each period of the loan. You can use formulas and references to automatically populate these values for each row in the spreadsheet.

Customizing the Schedule

Once you have the basic amortization schedule set up, you can customize it to fit your needs. You can add additional columns for extra payments or fees, and adjust the formulas accordingly. You can also format the spreadsheet to make it more visually appealing and easier to read.


Creating an amortization schedule in Excel is a straightforward process that can provide valuable insights into your loan payments. By following the steps outlined in this article, you can easily track your loan balance, principal and interest payments, and other relevant information. Excel’s flexibility allows you to customize the schedule to meet your specific needs and make it a useful tool for managing your finances.