Static Amortization Schedule
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An amortization schedule is a table that details periodic payments on an amortizing loan, calculated using an amortization calculator. The document explains how to create a simple amortization schedule template in Excel, detailing necessary input fields and functions used, such as PMT and EDATE. It also notes that this static template requires updates for any changes in data and plans for dynamic templates in the future.
Static Amortization Schedule
- 1. Financial Schedules- Amortization Schedule An amortization schedule is a table detailing each periodic payment on an amortizing loan, as generated by an amortization calculator. Amortization refers to the process of paying off a debt over time through regular payments. https://en.wikipedia.org/wiki/Amortization_schedule Simple Amortization Schedule I tried to use a simple loan to demonstrate the basic nuances in refer to creating amortization schedule. I have used some icons and pictures from different sources which have been written on template. Some Excel functions including EDate, PMT have been used in this template. This template is consisted of two parts: 1 – Data Entry Area 2 – Result Area In Data Entry Area, Purchase Price, Down Payment, Annual Interest Rate, Term and Loan Date information subject to changes. These areas are shaded. The difference between Purchase Price and Down Payment is a payment which is used in Amortization Schedule and can be find on Amount Financed cell of Data Entry Area. PMT function gives us Monthly Payment. Rate is given on yearly basis. We divided it by 12 to find on monthly basis. Term also is given in years and multiplied by 12 to find in months. I have used Sequence Function to find the number of terms in months under Payment Number Column.
- 2. I used EDate Function to find Payment Date in every next months which is shown under Date Column. Users can see Monthly Payment under Payment Column which is extracted from Data Entry Area. Balance*Interest_Rate/12 give us Interest Amount which can be found under Interest Column. The difference between Payment and Interest gives us Principal Amount. Last but not least, Users can find Balance Amount under Balance Column. This Schedule is Static. It has been prepared for one time. Users are required to make changes at each change on Data Entry Area. In my next templates, I will prepare Dynamic Amortization Template which will be subject to dynamic changes. This template can be download from the following platforms: 1- https://marketplace.corporatefinanceinstitute.com/financial-model-templates/schedules- templates/static-amortization-schedule/ 2- https://www.eloquens.com/tool/0yBJcYXP/finance/amortization-depreciation-excel- templates/static-amortization-schedule-with-regular-payments