Loan Amortization Spreadsheet

1. Open a new spreadsheet and enter in the following titles into the appropriate cells.

A B C D E F 1 Loan Amortization 2 3 Principal: 4 Interest Rate: 5 Number of Payments: 6 7 Monthly Payment: 8 9 Total Paid: 10 Total Interest: 11 12 Payment Principal Pay to Interest Pay to Principal Principal Owed 13 14

2. Enter the Loan’s information. a. In cell C3, enter the principal: 100000 b. In cell C4, enter the yearly interest rate: 6.25% c. In cell C5, enter the number if payments: 360 (30 years times 12 payments per year)

3. Calculate the monthly payment. a. In cell C7, enter the formula: =PMT(C4/12, C5, -C3)

4. Calculate total paid and total interest. a. In cell C9, enter the formula: =ROUND(C5*C7, 2) b. In cell C10, enter the formula: =C9-C3

5. Enter the first payment information. a. In cell A13, enter: 1 b. In cell B13, enter: =C3 c. In cell C13, enter: =B13*($C$4/12) d. In cell D13, enter =IF(C13< .01, 0, $C$7-C13) e. In cell E13, enter =B13-D13

6. Enter the formulas for the 2nd payment. a. In cell A14, enter: =A13+1 b. In cell B14, enter =E13 c. Highlight cells C13 to E13, fill down to cells C14 to E14 (just one row!)

7. Complete the table using fill down. a. Highlight cells A14 to E14, fill down to row 372. The principal owed should be $0.00, which indicates the loan was paid in full. Make sure you’ve selected currency format for all cells C13 to E372.

8. Modify the spreadsheet to create an auto loan. a. Highlight rows 73 to 372, right click and clear contents. b. In cell C3, enter the new principal: 15000 c. In cell C4, enter the new yearly interest: 6.00% d. In cell C5, enter the new number of payments: 60

9. Printing. a. In Formula ribbon, select Show Formulas b. In Insert ribbon, select Header/Footer and type in your name and period number. c. Select print, selecting pages radio button and enter 1 into the textbox, only printing the first page.