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The first column will be ?Payment Amount.? The second column is ?Interest Rate,? and it's optional if you're using a pen and paper. The third column is ?Remaining Loan Balance.? The fourth column is ?Interest Paid.? ?Principal Paid? is the fifth column, and ?Month/Payment Period? is the sixth and last column.

Record amortization expenses on the income statement under a line item called ?depreciation and amortization.? Debit the amortization expense to increase the asset account and reduce revenue. Credit the intangible asset for the value of the expense.

Excel amortization templates include pre-written formulas within cells to automatically calculate whatever data you need. In a good amortization Excel template, you only need to enter a few numbers, and formulas will take over and fill out the entire table for you.

How to create an amortization schedule in Excel Create column A labels. ... Enter loan information in column B. ... Calculate payments in cell B4. ... Create column headers inside row seven. ... Fill in the "Period" column. ... Fill in cells B8 to H8. ... Fill in cells B9 to H9. ... Fill out the rest of the schedule using the crosshairs.

An amortization schedule, often called an amortization table, spells out exactly what you'll be paying each month for your mortgage. The table will show your monthly payment, how much of it will go toward your loan's principal balance, and how much will be used on interest.

Amortization can refer to the process of paying off debt over time in regular installments of interest and principal sufficient to repay the loan in full by its maturity date.

You can build your own amortization schedule and include an extra payment each year to see how much that will affect the amount of time it takes to pay off the loan and lower the interest charges.