Have you ever wondered how to create a loan amortization schedule in Google Sheets? Well, you’re in luck! Spreadsheet software like Google Sheets is here to help you stay organized and automate daily tasks, whether you want to budget, track expenses, plan activities, or repay loans on time.
A loan amortization table can be a powerful way to see how your monthly payments can impact the overall cost of your loan, whether it’s a mortgage, auto loan, or personal loan.
In this tutorial, we’ll show you step-by-step how to create your own loan amortization schedule using just Google Sheets. This means you don’t have to search for sophisticated apps, and you can have full control over your loan repayment process, using just a few Google Sheets formulas.
What is a Loan Amortization Schedule in Google Sheets?
An amortized loan is a type of loan that involves scheduled periodic payments over a given period. The payments are applied to both the principal amount of the loan and the interest.
The process involves first repaying the corresponding interest for the period, so that the remaining payment can be used to reduce the principal amount.
What is a Loan Amortization Schedule in Google Sheets?
A loan amortization spreadsheet consists of a schedule of periodic loan payments. The schedule shows the principal amount and interest amount for each payment, from the beginning to the end of the loan.
The repayment process involves paying the same amount at each periodic due date. However, at the beginning of the process, most of the amount is used to repay interest, while towards the end, most of the amount covers the principal amount.
This makes the repayment process more comfortable for the borrower and reduces the total cost of the loan.
The last line of the table shows the total interest and principal payments by the borrower for the entire loan duration.
How to Create a Loan Amortization Schedule in Google Sheets
Now that we know the basics, let’s move on to the actual creation of the spreadsheet.
We will start by first creating a basic structure for the sheet, where we will enter the basic timeline, start date, loan interest rate, and total amount to be repaid.
Next, we will create the table and fill the first two rows with the appropriate formulas. Finally, all we have to do is drag the formulas down to fill the rest of the schedule. The last row should display an amount of 0.0 in the loan balance column.
We are now ready to start creating our loan amortization schedule in Google Sheets. Follow the steps below:
- Begin by creating a basic structure for your spreadsheet. You can use our loan amortization schedule template in Google Sheets here.
- Fill in the constant values in the first rows of the spreadsheet, such as the principal amount, interest rate, loan duration, and start date.
- Create the main table of the loan amortization schedule by filling in the necessary columns such as period, date, monthly payment, interest payment, principal payment, and loan balance.
- Use the appropriate formulas to calculate the monthly payments, interest payments, principal payments, and loan balance.
- Copy the formulas down to fill the rest of the schedule. Make sure to adjust the formula to match each row of the schedule.
- Verify that the last row displays a loan balance amount of 0.0.
And there you have it! Your loan amortization schedule in Google Sheets is now ready. You can easily customize this template for any type of loan by appropriately modifying the values. Enjoy the flexibility and control offered by Google Sheets to manage your loan repayments!
To learn more about creating a schedule in Google Sheets, visit Crawlan.com.
