An amortization table in Excel can be created using the PMT, PPMT and IPMT functions. The table reflects the amount of each payment, the portions that go toward principal or interest and the outstanding balance.
Know MoreAn amortization table is used to outline the details of a long-term loan, such as a mortgage or auto loan. It displays each payment made toward paying off the loan.
Step 1: Create the necessary rows
The rows should be labeled "annual interest rate," "years," "payments per year," "amount of loan" and "payment amount." The next column over should have all the applicable figures next to these cells.
Step 2: Calculate the monthly payments
Use the PMT Excel function to calculate the payments. This function takes into account the interest rate, the total number of payments, the present value and the future value of the loan.
Step 3: Calculate how the payment will be applied
Use the PPMT function and the IPMT function to figure out how much of each payment will go toward principal, and how much toward the interest. After subtracting both from the outstanding amount, the balance should be updated.
Step 4: Outline the rest of the payments
Select the cells reflecting the first payment amounts and balance and drag it down one row. Update the formula to reflect the data for the second payment. Repeat for the remaining number of payments, as necessary, until the balance reaches zero.
Learn more about SoftwareA pivot table is one of the most powerful features of Excel that allows the user to extract significance from a large set of data. It is a summarization tool available in visualization programs, including spreadsheets and business intelligence software.
Full Answer >Using and Excel worksheet, a person can create a monthly budget by creating a layout with the months listed in individual cells along one row of the spreadsheet leaving the first column blank. He can then add headings for income, salary, benefits, pension and total on the blank column.
Full Answer >In Excel, the mean function is used to calculate the average of a set of numbers. The numbers used can come from any cell in an Excel spreadsheet by listing the cells involved into the average function box.
Full Answer >To subtract in Excel, enter the numbers in a cell using the formula =x-y, complete the same formula using the column and row headings of two different cells, or use the SUM function with negative numbers. Excel does not have a specific SUBTRACT function.
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