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Let's say you've got your eye a new car or home. Before visiting with a banker you'd like to run some numbers and see if payments fit within your budget. Excel has a couple of functions that can help you. To calculate your payment, you use the =PMT function. You can even take it a step further and calculate how much you'll pay in interest (=IPMT) and principle (=PPMT) for your first payment and each payment thereafter.
Payment applied towards principal (payment number 1 of 60):
Payment applied towards interest (payment number 1 of 60):
Just do that 59 more times, incrementing 'Loan Payment Number' by 1 until you reach 60 and you will create your very own amortization schedule. If this had been a home loan with a 30-year term (360 months), you would only need to update this spreadsheet 359 more times!
That's where an iterative macro can help and save you a lot of time. Attached is an app with an embedded iterative macro. It does the same thing the Excel spreadsheet above does but it loops through each payment period and calculates how much of your payment goes towards principal and interest and recalculates your new loan balance. When you run the app, you'll enter your loan amount, APR and the number of months in the term (length) of the loan.