Amortization Excel Spreadsheet With Extra Payments In Phoenix
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The PMT function in Excel determines the total payment owed each period—inclusive of the interest and principal payment. The total payment, unlike the other two components, will remain constant over the entire borrowing term.
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.
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.
How to create an Excel sheet to track payments Open a new Excel spreadsheet. Create column headings for the following information. Enter the payment information into the spreadsheet. Use formulas to calculate the total amount of payments received and the total amount of outstanding payments.
