Amortization Excel Spreadsheet With Extra Payments In Houston
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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.
Key Excel functions (PMT, PPMT, IPMT) are used to calculate total payments, principal, and interest for each period in an amortization schedule.
To enter your expenses in your Excel budgeting template, go to the "Expenses" sheet. Here, you'll see a table with categories such as "Rent/Mortgage," "Utilities," "Food," and so on. Again, just enter the appropriate amount for each category and add new expenses as needed.
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 select an empty cell directly below a column of data. Then on the Formula tab, click AutoSum > Sum. Excel will automatically sense the range to be summed. (AutoSum can also work horizontally if you select an empty cell to the right of the cells to be summed.)
The formula is displayed in the formula bar, =AVERAGE(A2:A7) if you're using the sample data. In the Formula Bar, select the content between the parentheses, which is A2:A7 if you're using the sample data. key and click the cells that you want to average, and then press RETURN.
For example, to calculate the total monthly expenditure in a given month, input the formula =SUMIF(DateRange, "Month", AmountRange) where "DateRange" refers to the range of cells that contain the dates, "Month" is the specific month you're totaling, and "AmountRange" is the column of expenses.
Just select an empty cell directly below a column of data. Then on the Formula tab, click AutoSum > Sum. Excel will automatically sense the range to be summed. (AutoSum can also work horizontally if you select an empty cell to the right of the cells to be summed.)
Ideally, you want your extra payments to go towards the principal amount. However, many lenders will apply the extra payments to any interest accrued since your last payment and then apply anything left over to the principal amount. Other times, lenders may apply extra funds to next month's payment.
If you prepay your mortgage you reduce the principal balance, reducing the interest due next month and every month forward. If you prepay $1000 on your mortgage, the interest next month will be reduced by 10003.7%/12=3.08 You will still make the same payment, but an additional 3.083 will be credited toward principal.
