How Do You Make Your Own Amortization Spreadsheet?


Quick Answer

Create your own amortization schedule, or spreadsheet, by using a mortgage calculator, as provided by Bankrate. The mortgage calculator requires that you input certain items of information, including the amount of the loan, the term in years or months, the interest rate and the start date. The resulting amortization schedule provides crucial bits of information about the mortgage, including the payoff date.

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Full Answer

By creating your own amortization schedule, you can calculate the amount of the monthly payment and see how much of this payment goes toward paying off the principal of the loan and the interest for each payment, reports Bankrate. You can also use the amortization schedule to calculate when you have reached 20 percent equity on your home and can get rid of private mortgage insurance.

The amortization schedule also shows the total amount of interest paid after each payment and the remaining balance on the principal. You can adjust the schedule by including a schedule of extra payments, says Bankrate. You can work extra payments into a schedule in a variety of options. Choose either an extra payment made on a monthly basis, one made yearly on a specific month or a one-time extra payment made at any point during the term of the loan. Extra payments are applied to the principal of the loan and thus shorten the term of the loan and save money on the total interest paid.

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