![]() What are Extra Payments?Įxtra payments are the payments that a borrower makes along with his regular due payments. A borrower can visualize his due payment, principal paid, interest paid, and remaining loan balance over the loan terms after each payment period. Related Articles What is an Amortization Schedule?Īn amortization schedule is a schedule to visualize the loan repayment process. This template will be greatly helpful to homeowners, investors, business persons, students, financial planners, and all kinds of borrowers and lenders who are looking forward to taking or giving a loan. So, now, s/he will need an amortization schedule with extra payments template to get his/her regular due payment, principal paid, interest paid, and remaining loan balance after each payment period.ĭownload our free amortization schedule with extra payments template to generate your own amortization schedule with regular or irregular extra payments and read the following article to learn how to use this template efficiently. Now, if the borrower has some extra money and makes some extra payments along with regular payments, s/he will have to pay lesser interest eventually and will be able to repay the loan quicker than the initial deadline. This schedule will give him/her regular due payment, principal paid, interest paid, and remaining loan balance after each payment period. We can visualize the impact with a nice chart (requires some extra work) like this:ĭo check the download workbook for details on how the chart is setup.Get FREE Advanced Excel Exercises with Solutions!Īmortization schedule is a great tool for borrowers to visualize their loan repayment process. Go ahead and play with the table by typing some values in the “Extra payment” column. Step 3: Your mortgage will end when the “Eff. Closing Balance is opening balance minus principal paid minus extra payment.Ĭomplete this table with necessary formulas and fill everything down.Extra Payment is the input column where we can type any extra payments.We can get this with the PPMT() function. Principal Paid is the amount of principal paid in each month.=ROUND(NPER($E$7/12,$E$10,$D13),0) will tell us how many months it is rounded. We can use NPER function to get the answer here. Effective term is how long it would take you to pay off the mortgage based on the opening balance, and agreed upon monthly payment (calculated in Step 1) and interest rate (Cell E7).For subsequent months, this will same as previous month’s closing balance. Opening Balance is same as loan amount for month=1.Related: Read about SEQUENCE and other Dynamic Array functions in Excel. You can use =SEQUENCE(360) to automatically generate all the months. So, set up a range of 360 months (or longer if you want to cater for longer mortgages). ![]() In my case, let’s say loan is $500,000, term is 20 years and APR (Interest rate) is 5.35% per annum.Īs extra payment will bring down the outstanding loan term, we need to set up an amortization table to see the impact clearly. ![]() Step 1: Calculate the monthly (or weekly / fortnightly) payment:Īssuming you have the Loan amount, term & APR in three cells E5, E6 & E7, we can use the PMT() function to calculate the periodic payment.
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