Use the PMT function in Excel to create the formula: PMT(rate, nper, pv, fv, type). 1 This formula lets you calculate monthly payments when you divide the annual interest rate by 12, for the number of months in a year.

Even a single extra payment made each year can reduce the amount of interest and shorten the amortization, as long as the payment goes toward the principal and not the interest. Just make sure your lender processes the payment this way.

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The tutorial shows how to build an amortization schedule in Excel to detail periodic payments on an amortizing loan or mortgage. Here is the link to my spreadsheet where you can calculate a loan over x years to be paid back monthly.It will give you the amortized payment amount. I would like to be able to calculate the remaining amount of loan due after each payment on a loan with irregular payment dates and irregular amounts. Adding extra principal payments in order to pay off the loan earlier than the loan contract calls for. In this tutorial we will add this feature. Loan amortization schedule. 3. 4, Enter values, Loan summary. No. Due Date, Due Payment, Extra Payment (Recurring), Extra Payment (Irregular), Interest Paid, Principal Paid, Balance. Instructions for a complete electronic submission are found under Instructions-Electronic Submit.