# Loan Amortization Schedule Calculator

## What does it do?

This loan amortization schedule calculator can be used for any loan up to a maximum term of 3,650 payment periods. The calculator will produce a loan amortization schedule setting out for each period, the opening loan balance, the amount of interest, the repayment, and the closing loan balance.

In addition, the calculator will also show the periodic repayments due on the loan together with the total amount repayable and total interest payable over the term. All payments are assumed to take place at the end of each period.

## Instructions

The Excel loan amortization schedule calculator, available for download below, is used to produce a loan amortization schedule by entering details relating to the amount of the loan, interest rate and the number of periods. The loan amortization schedule calculator is used as follows:

### Step 1

Enter the amount of the loan (PV). This is the amount taken as a loan today, at the start of period 1.

### Step 2

Enter the interest rate (i). The interest rate should be for a period, so for example, if the payments are to be made monthly, then the rate should be the monthly rate.

A nominal annual rate can be converted to a periodic rate by dividing by the number of periods in a year. For example, if the annual rate is 9%, then the monthly rate to enter is 9%/12 = 0.75%.

### Step 3

Enter the number of periods (n). A period can be any term (month, year etc), but must be consistent with the interest rate provided (see step 2). For example, if the loan is to be repaid monthly for the next 10 years, then the number of periods is 120 months.

### Step 4

The loan amortization schedule calculator works out the periodic payment (Pmt) required at the end of each of n periods to repay a loan amount (PV) at a periodic interest rate of i. It shows the total repayments and interest on the loan.

In addition, the calculator provides a loan amortization schedule setting out the opening balance, interest, payment, and closing balance for each period of the term.