The next thing you do is to create an amortization table with the labels ( Period, Payment, Interest, Principal, Balance) in A7:E7. Set up the amortization tableįor starters, define the input cells where you will enter the known components of a loan: Now, let's go through the process step-by-step. IPMT function - finds the interest part of each payment that goes toward interest.
This amount increases for subsequent payments.
This amount stays constant for the entire duration of the loan. To build a loan or mortgage amortization schedule in Excel, we will need to use the following functions: How to create a loan amortization schedule in Excel
