Simple Interest Amortization Spreadsheet

Download a free Excel template that creates an amortization table or chart for a simple interest loan. In this work sheet, you just enter the loan amount, the interest rate, and the number of payments or periods. The calculator can be used to get initial estimates for car loans and home mortgages. Of course, mortgage loans are quite a bit more complicated, but if you would like a basic spreadsheet to show how the interest calculations work, this one might help.

Screenshot Online Version

Simple Interest Amortization in Excel Calculate the required payments and total interest paid for a simple fixed-rate loan. Also, create a basic amortization table and a chart that compares the cumulative interest vs. principal. Good for gaining an initial understanding of amortization for car loans and home mortgage loans. (Contains no macros.)

Download Now File Type: .xls Size: ~150 KB Required: Microsoft Excel 2000/XP/2003 License: Free (For Personal Use) Help support Vertex42.com (Not Tax-Deductible)

The Payment Formula

The Excel PMT(rate,nper,pv) formula calculates the payment amount for a loan, assuming a fixed interest rate, and constant payments. For the simple interest amortization spreadsheet, this formula requires the following inputs:

• Loan Amount (pv): This is self-explanatory, but for the PMT function, the loan amount is specified as the Present Value (pv).
  
  
• Number of Payments (nper): If the loan is a 3-year loan, but payments are made monthly, then the number of payments is nper = 3*12 = 36 months.
  
  
• Interest Rate (rate): It is important that the interest rate is consistent with the payment period. If you have a 5% annual interest rate and payments are made monthly, then the rate per period is 5%/12 or 0.05/12.

Other Comments About the Amortization Spreadsheet

• No rounding (Does not account for rounding payments to the nearest cent.)