In Microsoft Excel, the function "PMT" automatically calculates the payment needed to create an amortization table. The function uses the total mortgage value, the interest rate and the term of the loan in a standard algebraic formula to obtain the value for the payment.

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Amortization Schedule Calculator This loan calculator – also known as an amortization schedule calculator – lets you estimate your monthly loan repayments. It also determines out how much of your repayments will go towards the principal and how much will go towards interest.

How is an Amortization Schedule Calculated? A amortization schedule is a table or chart showing each payment on an amortizing loan, including how much of each payment is interest and the amount going towards the principal balance. Thankfully, there are many freely available websites and calculators that create amortization schedules automatically.

In excel one can use below formula to calculate amortization value:-For calculation of interest paid during a specific period, we will use below formula. =ISPMT(Rate,per,nper,pv) To calculate the amount of payment in a period below formula is used. = PMT(Rate,nper,pv) To calculate a number of payment below formula is used. = NPER(Rate,pmt,pv)

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The costs of the loan are allocated over the life. The formula is straight forward for the amortization.

The loan payment calculation for an interest-only loan is easier. Multiply the amount you borrow by the annual interest rate. Then divide by the number of payments per year. There are other ways to arrive at that same result. Example (using the same loan as above): $100,000 times .06 = $6,000 per year of interest.

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Microsoft Excel is a widely used spreadsheet program that can use formulas to compute and display values. When your small business is taking out a loan, you need to know how much of each loan.

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