Skip to main content
Вернуться к руководствам
3 min read6 Шаги

How to Create a Loan Amortization Table: Step-by-Step Guide

Calculate loan amortization manually

Оставьте математику — воспользуйтесь калькулятором

Пошаговые инструкции

1

Gather Your Inputs

First, identify the principal loan amount (P), the annual interest rate, and the loan term in years. For example, let's say you have a $10,000 loan with an annual interest rate of 6% and a loan term of 5 years.

2

Calculate the Monthly Interest Rate

Next, calculate the monthly interest rate (i) by dividing the annual interest rate by 12. Using the example above, the monthly interest rate would be 6% / 12 = 0.005.

3

Calculate the Number of Payments

Then, calculate the number of payments (n) by multiplying the loan term in years by 12. Using the example above, the number of payments would be 5 years \* 12 = 60 months.

4

Apply the Formula

Now, plug in the values into the formula: M = 10000 [ 0.005(1 + 0.005)^60 ] / [ (1 + 0.005)^60 - 1 ]. Calculate the monthly payment using the formula.

5

Create the Amortization Table

Finally, create the amortization table by calculating the interest and principal paid each month. The interest paid each month is the outstanding balance \* monthly interest rate, and the principal paid is the monthly payment - interest paid. Repeat this process for each month until the loan is paid off.

6

Using a Calculator for Convenience

While creating a loan amortization table by hand can be a useful learning exercise, it can be time-consuming and prone to errors. For convenience, you can use a financial calculator or an online loan amortization schedule tool to instantly generate the amortization table and chart.

Introduction to Loan Amortization

A loan amortization table is a schedule that outlines the monthly payments for a loan, including the amount of interest and principal paid each month. Creating a loan amortization table can help borrowers understand how much of their monthly payment goes towards interest and how much goes towards paying off the principal.

Understanding the Formula

The formula for calculating the monthly payment (M) is: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ] Where:

  • M = monthly payment
  • P = principal loan amount
  • i = monthly interest rate (annual interest rate / 12)
  • n = number of payments (loan term in years * 12)

Step-by-Step Guide

Готовы рассчитать?

Откажитесь от ручной работы и получите мгновенные результаты.

Открыть калькулятор

Настройки