An amortization schedule is a table that shows the breakdown of each loan payment, including the amount of principal and interest that is paid each month. It is a useful tool for tracking the progress of a loan and can help borrowers understand how much of their payment is going towards paying down the principal balance. To make an amortization schedule in Excel, you can use the PMT function to calculate the monthly payment and then use the IPMT and PPMT functions to calculate the interest and principal portions of each payment.
Benefits of using an amortization schedule:
