How to Create an Amortization Schedule in Excel: 2024 Guide

Creating an amortization schedule in Excel is a straightforward process. It involves setting up a table to calculate and track loan payments over time, including the amount that goes towards interest and the amount that goes towards the principal balance. By following a few simple steps, you can easily create a custom schedule that will help you manage your finances better.

Step by Step Tutorial: Creating an Amortization Schedule in Excel

Before we dive into the steps, let’s quickly understand what an amortization schedule is. It’s a table that outlines each loan payment and how it’s divided between interest and principal. It also shows the remaining balance after each payment. This is super useful if you want to see how your payments are chipping away at your loan over time.

Step 1: Open Excel and Set Up Your Table

Open a new Excel workbook and set up the columns for your amortization schedule.

When setting up your table, you’ll want to include columns for the payment date, payment amount, interest amount, principal amount, and remaining balance. Make sure to leave room for your column headers at the top!

Step 2: Input Loan Information

Enter your loan amount, interest rate, and loan term into the table.

You’ll need to know your loan’s interest rate and term (the length of the loan in years or months). Input these details in cells at the top of your worksheet so you can reference them later in your formulas.

Step 3: Calculate Interest and Principal Payments

Use Excel formulas to calculate the interest and principal amounts for each payment.

For the interest payment, you’ll use a formula that takes the remaining balance and multiplies it by the interest rate divided by the number of payments in a year. For the principal payment, subtract the interest from the total payment amount.

Step 4: Fill Down the Table

Copy the formulas down through the rest of the table to calculate payments for the entire loan term.

After entering your formulas, use Excel’s fill handle (the little square at the bottom-right of a selected cell) to drag and copy the formulas down through the rest of your table. This will apply the calculations to each payment for the life of the loan.

Step 5: Format Your Schedule

Adjust the formatting of your schedule to make it clear and easy to read.

You might want to format your numbers to show two decimal places, or change the font and background colors to make your schedule easier to read. Excel has lots of formatting options, so play around and see what looks best to you!

After completing these steps, you’ll have a detailed amortization schedule that shows each payment and how it’s divided between paying off interest and reducing the principal balance. You can use this schedule to plan your finances and see when your loan will be fully paid off.

Tips for Creating an Amortization Schedule in Excel

  • Make sure to use absolute references (with the $ symbol) for cells containing the interest rate and term when creating formulas.
  • Double-check your formulas to ensure they are calculating correctly, especially if you’re copying them down the table.
  • Consider using Excel’s built-in loan amortization template for a quick start.
  • Regularly update the remaining balance column if you make additional payments or if there are changes to your loan terms.
  • Use conditional formatting to highlight milestones, like when you’ve paid off half of the loan.

Frequently Asked Questions

What is an amortization schedule?

An amortization schedule is a detailed table that shows the payment breakdown of a loan over time, including interest and principal amounts, as well as the remaining balance after each payment.

Can I create an amortization schedule for any type of loan?

Yes, you can create an amortization schedule for any fixed-term, fixed-interest loan, such as a mortgage, auto loan, or student loan.

Do I need to know Excel formulas to create an amortization schedule?

You will need to use basic Excel formulas to calculate the interest and principal payments, but don’t worry—they’re not too complicated.

What if I make extra payments on my loan?

If you make extra payments, you’ll need to adjust the remaining balance column accordingly to ensure your schedule remains accurate.

Can I use an amortization schedule to compare different loan options?

Yes, you can create multiple schedules to compare different loan terms and interest rates to see which option is best for your financial situation.


  1. Open Excel and set up your table.
  2. Input loan information.
  3. Calculate interest and principal payments.
  4. Fill down the table.
  5. Format your schedule.


Creating an amortization schedule in Excel can seem intimidating at first, but with a bit of knowledge and practice, it can become a powerful tool in your financial toolkit. Not only does it provide visual insight into how each payment is distributed, but it also empowers you to make informed decisions about your loans. By using the steps outlined in this guide, anyone with basic Excel skills can generate a personalized amortization schedule that caters to their specific loan details. Remember that the key to successfully managing your loans is staying informed and proactive. So why not take control of your financial future today by creating an amortization schedule in Excel? After all, seeing the numbers laid out in front of you could be the motivation you need to become debt-free sooner than you think!

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