It does the same thing the Excel spreadsheet above does but it loops through each payment period and calculates how much of your payment goes towards principal and interest and recalculates your new loan balance. Attached is an app with an embedded iterative macro. That's where an iterative macro can help and save you a lot of time. If this had been a home loan with a 30-year term (360 months), you would only need to update this spreadsheet 359 more times! Just do that 59 more times, incrementing 'Loan Payment Number' by 1 until you reach 60 and you will create your very own amortization schedule. Payment applied towards interest (payment number 1 of 60): Payment applied towards principal (payment number 1 of 60): You can even take it a step further and calculate how much you'll pay in interest (=IPMT) and principle (=PPMT) for your first payment and each payment thereafter. To calculate your payment, you use the =PMT function.
Excel has a couple of functions that can help you. Before visiting with a banker you'd like to run some numbers and see if payments fit within your budget. Let's say you've got your eye a new car or home.
