As you reduce the principal balance, less interest is charged per payment. When amortizing a loan, your first loan payment consists mostly of interest. Amortization builds principal and interest into each payment, ensuring you pay both, and structures predictable payments for the borrower. It’s used commonly for mortgages, auto loans, student loans, and personal loans. A template simplifies what can often be a complex process with many difficult formulas.Īmortization involves breaking a fixed-rate loan into equal monthly payments to pay off by a certain date. Get the template What is an Excel loan amortization schedule template?Īn Excel amortization schedule template - what a mouthful - is a pre-structured document with fillable fields that helps you fill out a loan amortization schedule. To help make this easier, we’ve created a fully customizable template that you can export into a completed Excel spreadsheet with just a few clicks.

Paying loans back involves using an amortization schedule, breaking the loan into equal monthly payments of principal and interest. Loans help us buy things that are too expensive to pay for with cash in hand, such as homes, cars, and business assets.