Ease of use: Using an amortization schedule in Excel is rather simple. This helps ensure you can learn how to manipulate and alter the schedule to provide you with all the information you might need for tracking your payments and interest.

Key Excel functions (PMT, PPMT, IPMT) are used to calculate total payments, principal, and interest for each period in an amortization schedule.

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.

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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. Fill in the "Period" column.Fill in the column titled "Period" with your payment dates. Loan amortization schedule. 3. 4, Enter values, Loan summary. 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. This Excel spreadsheet makes it easy to view the amortization of a home loan with optional extra monthly payments. Use this free loan amortization template to create a monthly loan amortization table for any loan period up to 30 years. RBC Royal Bank's easy-to-use mortgage calculators and tools can help you estimate your payments and how much you can afford.