How to make an amortization schedule with excel
Since amortization is a monthly calculation in this example, the term is stated in months, not years. The term of the loan is 360 months (30 years).To calculate amortization, you will convert the annual interest rate into a monthly rate. Your interest rate (6%) is the annual rate on the loan.If your loan has a balance outstanding of $100,000 (not counting any accrued interest), that is the principal. For example, say you are paying off a 30-year mortgage. The principal is the current loan amount.In this case, you will calculate monthly amortization. To calculate amortization, you also need the term of the loan and the payment amount each period. You’ll need the principal amount and the interest rate.
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Gather the information you need to calculate the loan’s amortization.