Loan Amortization Schedule Excel With Variable Interest Rate In Fairfax
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Variables in Microsoft Excel are a method of assigning a numerical value, equation or formula to a shorter name, cell reference or function. For example, if you have a long equation such as "y=mx+b" you can assign it a short value to minimize the number of times you type that equation into Excel.
Fortunately, Excel can be used to create an amortization schedule. The amortization schedule template below can be used for a variable number of periods, as well as extra payments and variable interest rates.
Example of Amortization In the first month, $75 of the $664.03 monthly payment goes to interest. The remaining $589.03 goes toward the principal. The total payment stays the same each month, while the portion going to principal increases and the portion going to interest decreases.
You could also calculate simple interest only with the formula I = Prt, where I is interest, P is principal, r is interest rate as a decimal, and t is time period. You then need to add the interest to the original principal amount to get the total interest plus principal.
