Can You Use Microsoft Excel for Loan Amortization?

Can You Use Microsoft Excel for Loan Amortization?

Microsoft Excel can be used to generate a loan amortization schedule. Microsoft Support provides detailed instructions for the creation and graphical representation of the loan amortization schedule.

The support page for Microsoft Excel provides step-by-step instructions for generating a loan amortization schedule. The sample provides the user with the opportunity to input the loan amount, interest rate, and the number of payments. The PMT function is used to calculate the monthly payment. Additional equations are shown to guide the user in populating a comprehensive chart that includes the end balance, starting balance, interest and total monthly payment. Microsoft also provides templates for personal use, such as those for mortgage loans.