Microsoft Office Tutorials and References

In Depth Information

**Creating Amortization Schedules**

Creating Amortization Schedules

In its simplest form, an
amortization schedule
tracks the payments (including interest and

principal components) and the loan balance for a particular loan. This section presents several

examples of amortization schedules.

A simple amortization schedule

This example uses a simple loan to demonstrate the basic concepts involved in creating a

dynamic schedule. Refer to the worksheet in Figure 13-1. Notice that rows 19 through 369 are

hidden, so only the first five payments and last five payments are visible.

Figure 13-1:
A simple amortization schedule.

All the examples in this section are available on the companion CD-ROM in the

workbook
amortization.xlsx
.

User input section

The area above the schedule contains cells for user input and for intermediate calculations. The

user input cells are shaded, so itâ€™s easy to determine what can be changed and what has a formula.

The user can enter the purchase price and the down payment. The amount financed is calculated

for use in the amortization calculation. The formula in cell B5 is