How to Create an Amortization Schedule in Less Than 2 Minutes

🛠️ What You’ll Need:

• Excel or Google Sheets

• These 4 details:

  • Loan amount

  • Interest rate

  • Loan term (in months or years)

  • Start date (optional)

⏱️ Step-by-Step in Under 2 Minutes:

🔹 Step 1: Open Excel or Google Sheets

🔹 Step 2: In a blank sheet, set up these column headers:

🔹 Step 3: Use These Formulas

Let’s say:

• Loan Amount = $10,000

• Interest Rate = 6% annually

• Loan Term = 12 months

• Monthly Rate = 6%/12 = 0.5% → use 0.005 in formulas

1. Monthly Payment (use this formula in a cell):

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   =PMT(0.005, 12, -10000)


2. Fill down each row:

   • Payment number: Start from 1

   • Payment date: Use =EDATE(start_date, payment_number-1)

   • Interest: =previous_balance * 0.005

   • Principal: =monthly_payment - interest

   • New balance: =previous_balance - principal

🎉 Done!

You now have a full amortization schedule showing:

• How each payment is split

• How interest shrinks over time

• How principal grows