Generate a loan amortization schedule based on the details you specify with this handy, accessible loan calculator template. This Excel loan calculator template makes it easy to enter the interest rate, loan amount, and loan period, and see what your monthly principal and interest payments will be. Show
Excel Download Open in browser Share  Some of the questions I have had regarding mortgages and just loans in general have had to do with whether it is a good idea to make extra payments on the principal. If you have had similar questions, please feel free to download the Extra Mortgage Payments Calculator for Excel and read the rest of this page. Advertisement Why Make Extra Mortgage Payments?There may be many reasons a person wants to make additional payments on the principal of a loan, but the most common reasons seem to be:
All of these may be good reasons to make additional payments, but make sure you understand what you are doing, first. See below for more information about each of these reasons. Download⤓ Excel (.xlsx) For: Excel 2007 or later & Excel for iPad/iPhone License: Personal Use (not for distribution or resale) "No installation, no macros - just a simple spreadsheet" - by DescriptionCalculate the difference in total interest paid on a mortgage loan when making additional monthly payments. Since creating this spreadsheet, I've created many other calculators that let you include extra mortgage payments. The most advanced and flexible one is my Home Mortgage Calculator. * For Excel 2003: The CUMIPMT function requires the Analysis ToolPak, which comes with Excel but is often not installed automatically. To install the add-in, open up Excel and go to the Tools menu > Add-Ins... and check the box next to "Analysis ToolPak". Reasons to Make Extra PaymentsPaying off a Mortgage EarlyThis approach is pretty easy to understand. If you make additional payments, you'd expect the loan to paid sooner. The spreadsheet assumes that the extra mortgage payments are made every month. Pay Less Total InterestEach month, your payment consists of both interest and principal. The amount of interest that is paid depends upon the amount of principal still owed (i.e. the current balance). That means that if you pay down the principal, you will end up paying less interest. This is the so-called "interest savings" that is calculated in the worksheet (i.e. the reduction in the interest expense). Extra Payments vs. SavingsIt may be weird to think of making additional payments as an "investment", but it turns out that making extra payments is nearly identical to placing the money in a savings plan. If the mortgage interest rate is the same as for the savings plan, then the amount of reduced interest expense from making extra payments is identical to the amount of interest "gained" in the savings plan (assuming both rates are fixed and compound monthly). The main difference is that with a savings plan (or other similar investment), the cash is more readily available. The bottom line has to do with three main questions (which you will have to answer for yourself):
Other QuestionsWhat about home appreciation or depreciation? Simply put, this is a completely separate issue. The "interest savings" from extra payments has to do with the mortgage interest rate, not the present value of the home. What about taxes? I'm not going to answer this one because I'm not a professional tax advisor, but remember that the amount of interest paid on a mortgage is usually deductible and the amount of interest gained in a savings/investment account may be taxable. More Mortgage and Loan Calculators
Disclaimer: This spreadsheet and documentation on this page are meant for educational purposes only. We believe the calculations to be correct, but do not guarantee the results. Please consult your financial advisor or lending institution before making any final financial decisions. Some mortgage loans may have a prepayment penalty. How do I create a loan amortization payment in Excel with extra payments?How to make a loan amortization schedule with extra payments in Excel. Define input cells. As usual, begin with setting up the input cells. ... . Calculate a scheduled payment. ... . Set up the amortization table. ... . Build formulas for amortization schedule with extra payments. ... . Hide extra periods. ... . Make a loan summary.. How do you add extra payments to amortization schedule?Amortization Calculator
If you would like to make one additional payment each year, multiply the amount by the duration of the loan. For example, for an additional $600 a year on a 30-year loan, enter $18,000.
Does paying extra principal change amortization schedule?How extra payments affect your amortization schedule. You do have the option to pay extra toward your mortgage, which will alter your amortization schedule. Paying extra can be a good way to save money in the long run, because the money will go toward your principal, not the interest.
What happens if I pay 2 extra mortgage payments a year?Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you'll have fewer total payments to make, in-turn leading to more savings.
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Excel amortization schedule with extra principal payments
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