YouTube Description

Let’s build an Amortization Loan Payoff Schedule in Excel quick and easy.

Etsy Link to this Loan Payoff Schedule https://etsy.me/35hheEk

Making your own schedule isn’t hard and you can do it yourself. In this video we go over what loan details you need to input into Excel, the exact formulas need to calculate the principal and interest payments, and as a bonus you can track your age for each future period to know how old you will be when the loan is paid off in full.

Be sure to check out my website DugginMoney.com at https://bit.ly/DugginMoney

I’m a certified public accountant and I love to talk about anything money related. If you enjoyed this video be sure to subscribe. As always, thanks for watching.

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YouTube Transcript

Today we’re going to be learning how to

make an amortization schedule in Excel

fast and easy and we’re going to get

right into it, here we go. If you are more

interested in downloading the

spreadsheet you can just go to my Etsy

Shop https://etsy.me/35hheEk and you can find a link to that in

the description below.

So open up Excel and we are going to get right into it.

Here we go.

You’re going to find on my template a

section for the loan administrator

information. It’s easy for not only you

to remember where everything is located

but also if other people need to come in

behind you and find where your website

login information is or family members

who need to also have this information

they can do that as well.

Right below that you’re going to see

the information for your loan detail.

We have 250,000 dollars hard-coded in here.

This isn’t a formula this is just

pulling it in as you type it and then

you can type in your annual interest

rate. You type in your loan period in

years and so this is for a 15-year

mortgage. If it was 30-year you would

type in 30 right here

or if it was a car loan it might be five

years and you would just type in five.

So we’re going to keep this at 15

and then we’re going to type in the

number of payments per year and so

that’s going to always be 12, typically .

You can also put in your origination date

and that origination date is just going

to be the date that you received the

loan. A lot of this detail is going to be

pulling down into our schedule.

This first column is for the month or

you can also refer to it as the period.

We got one two three four five and it’s just

going to be going down for each period.

And then we’ve got the date. This date is

pulling in from cell C11 which is our

origination date.

And then we’re going to be taking

a formula for the date and it’s going to

be able to take this B16 it’s going to take

this date that’s pulling in from our origination

date and then it’s going to be taking the

year from it the month

and we’ve got the day over here and so

what it’s going to be doing is going to

be taking this month from our previous

row and adding one to it. So that’s

what’s happening here. What you might

want to do is put in your payment date

as far as your first payment date right

here. That might help you kind of figure out

when this payment is due. We’ve got the

beginning balance.

It is a cell reference to C7 which is

our original loan amount

and then we start getting into the formulas.

Your total payment amount is going to be

your principal plus your interest and so

that is just adding up these two cells

for column E and column F.

Then the principal amount. So we have a

negative before our formula and it’s PPMT.

The reason we have a negative is so

that when it calculates it it’ll

bring it in as a negative. If you don’t

have this negative here and so if we remove this negative

these payment principal amounts will show as

negative and we kind of really just

visually don’t want that. We want just

more of a visual something that looks

better visually. So we’ll just leave that

in there. Let me double click that again, get back

into it. And so we have a dollar sign and

it’s referencing cell C8 and so that is so it doesn’t change as

you drag the formula down.

We have C8 which is the annual interest rate.

If I click here you can see in excel it shows you the formula

and it shows you what this actually is referencing.

This is the rate, this formula you want to have the

rate right there and it’s bringing in C8.

And ours is 3.75%

per annual so that’s per year and we’re

going to divide that by 12.

So that we get the monthly interest rate

and then this next one is the period and so it’s referencing

column A row 16 and it’s the first period.

And then this nper is right here

and this is going to be the total number

of periods that you have in your loan

and it’s referencing C9.

So C9 is 15 years times C10 the number of payments per

year and so that gives you the total number

of periods for your loan amount.

And then we have the present value which

is C7 of the loan which is the 250,000

amount that we have there

and then we have zero in the last to

close out the formula for future value which is zero.

Moving on we have the interest

and let’s look into this one as well. So

much like the previous formula for the

principle we have a negative

here to start it out and it’s IPMT for interest.

The other one was PPMT for principal

So IPMT. And we’ll just walk through this again.

It’s bringing in our rate and dividing by 12.

So it’s referencing C8 and again we have

dollar signs there so it doesn’t change which cell it’s

referencing as you drag your formula down.

And then the next one is A16 which is our

period. It’s also referencing this cell here for A16.

And then we have the total number of periods which is

just like our other formula.

It’s C9 which is 15 times C10 which is 12

and that’ll give us our total number periods.

And then for the present value it is also referencing

C7 and then the future value is zero

because hopefully you follow through and

actually make your payments and your

loan balance goes to zero.

So that would give us our interest

and I’ll come back to this extra

principle column but right now that’ll

give us our ending balance for this

first period and our ending balance is

just a formula. Going down it’s taking

our beginning balance,

it’s taking how much you paid in principle

and any extra principle you might have

paid and giving you your ending balance.

Let’s say on a month you have some extra

money and you want to send a payment in

you can just type in how much you’re sending in

and it’ll take into account how much extra you’re

sending in and it’ll reduce that ending balance.

So let’s say you receive an inheritance of a hundred

thousand dollars and you’re like you

know what I’m gonna send that to pay off my loan

balance and I don’t want to keep that in my bank.

Well you can just send that in,

put that in here and you can see how

that affects your loan payoff because as you go down

your loan payoff is going to be before

the end of your loan amount.

So if we look

here on period 119 we’ve got the date of when that is

and we also know that your last payment

is going to be 729 dollars and three cents.

And after that it’s going to be paid off.

Let’s go back up to the top.

Let’s remove these extra payments.

One thing I have over here that you

might like as well is whenever I have a loan payoff schedule

I like to know how old I’m going to be on these particular dates.

It’s like yeah you might already have an

idea but it’s nice to see how old you might be

and so you can type in your birth date right here.

This formula right here is going to take

your birthday and calculate how old

you’re going to be on this date.

And you can do that for your whole family.

Put them all in and kind of have

fun with it and that way as you scroll

down you’ll know how old you’ll be. So

one way to check that you have

everything inputted correctly is you can do some totals.

If you highlight a column, if you look down here

it gives you a sum.

That’s how much principle you’ve paid

off which happens to be our beginning loan amount.

If i highlight the interest column you

can see how much you’re paying interest.

So if we look on row two

right now we have this beginning balance.

It is actually just a cell reference

going to our ending balance and it’s

bringing that forward. So that we have a

new row of beginning what your payments

are going to be and

your ending balance.

And if I just kind of click down you can

see the cell reference up here in the formula bar.

It’s just updating to the new

ending balance from the previous row.

Then once you get those inputted you can

drag these down these formulas

and it’ll automatically update. So there’s a little

square over here in the corner if you put your mouse

cursor right on it and click that and then drag down

you can fill in all the rows that you want to fill in to

complete your schedule.

All right thank you for joining me on

this quick tutorial on how to build your

own amortization schedule in Excel and I

hope you enjoyed it and learned something new today.

If you made it this far in the video thank you so much I

appreciate it. If you would hit that

thumbs up and the subscribe button and

I will see you next time.