![]() The repayment calculator does not show all interest rates. For fixed rate interest only loans, the comparison rates are based on an initial interest only period equal in term to the fixed period. For interest only variable loans, the comparison rates are based on an initial 5 year interest only term. Different terms, fees or other loan amounts might result in a different comparison rate. WARNING: This Comparison Rate is true only for the examples given and may not include all fees and charges. The comparisons are indicative estimates for illustrative purposes only and are based on current interest rates (which may change).Ĭomparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly payments, including any applicable interest rate discounts. I just pulled the numbers in the cash flow budget off the top of my head and they don’t reflect any real-life information.Estimated repayments and repayment scenario comparisons are estimates only based on the loan amounts, loan types and loan terms selected. I’ve previously written a post on how to set a cash flow budget, but not specifically how to do it in excel, so if you would like me to write a tutorial on that, let me know. You will notice it’s incomplete but it gives us an idea of how this works. Banks often have their own confusing ways of calculating interest, so your results may differ from theirs.īelow is an example of a cash flow budget. How much interest do you save? How much time? What about if the interest rate is 7%? What is the repayment amount? Linking Our Repayment Report with our Budget to See How Various Scenarios affect Our Cash FlowĪll results are based on the assumption that the interest rate remains fixed throughout the entire loan term and that interest is calculated monthly and payments made monthly. Have a go changing the extra repayment amount to $120. Because everything is formulated, changing one variable will mean that the entire amortisation table will adjust automatically and the interest saved and loan period will also be adjusted automatically and that’s the exciting part about Excel! And once you have this spreadsheet set up, you can copy and paste it into multiple sheets and use it to calculate other loans like a car loan. That’s it! Now we can run some scenarios by changing the variables under the monthly repayment calculations such as the interest rate, the extra repayment amount or the principal amount. Click on the option use formula to determine which cells to format and enter the following formula: ![]() Select the entire table range from E3 to 元62, open up the conditional formatting dialogue from the Home ribbon and select New Rule. The conditional formatting will mean that any cell that has a 0 in it will be “hidden” and the hidden cells will change automatically if we change our extra repayment amount. Now we can leave our amortisation table as is and it is just fine, or we can use some conditional formatting to hide any 0 amounts and make it look pretty. Everything after that has been changed from negative numbers to zeros. Have a look towards the bottom of the spreadsheet and you will notice that with the extra repayment of $80 per month, we will have paid off our loan 30 months early (period 331). You will notice that for these two formulae, we have used the dollar signs for absolute references to lock in the numbers from our data table for when we fill down. So, if the balance at the beginning of the month is less than the monthly payment amount (B6) then make $0 extra repayment, otherwise, use the extra repayment amount as we set up in B11. Always check with a professional financial advisor before making financial decisions. You should double-check your results with your bank or professional financial advisor. It does not take into account bank fees.ĭisclaimer: This tutorial is for informational purposes only and does not constitute as professional advice. I’ll start with the same information from the PMT exercise, so if you haven’t done principal and interest calculations, do those first.Īll results are based on the assumption that the interest rate remains fixed throughout the entire loan term and that interest is calculated monthly and payments made monthly. Create Your Own Amortization Table in Excel Of course, making loan calculations can be done easily using free online loan calculators, but that’s not as fun as doing it yourself in Excel and this way you can link your information into your budget to run some dynamic financial scenarios. Photo by rawpixel on Unsplash.Ĭheck out the PMT tutorial before starting this one to create the initial data table. ![]()
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