How to Create a Loan Amortization Schedule in Google Sheets

Ever been curious about how to create a loan amortization schedule in Google Sheets? Then you’re in luck! Spreadsheet software like Google Sheets are there to help you get organized and automate everyday tasks, whether you want to maintain a budget, track expenditures, schedule activities or pay off loans on time.

An amortization table can be a really powerful way to see how your monthly payments can affect the overall cost of your loan, be it a mortgage, a car loan, or a personal loan.

In this tutorial, we will demonstrate from start to finish, how you can create your own Loan Amortization schedule just by using Google Sheets. This means you don’t have to go looking for fancy apps and can have complete control over your loan repayment process, simply by using a few Google Sheets formulas.

 

What is an Amortized Loan?

An amortized loan is a type of loan that involves periodic payments scheduled over a given period of time. The payments are applied to both the loan’s principal amount as well as the interest.

The process consists of first paying off the relevant interest for the period, so that the rest of the payment can be put towards reducing the principal amount.

 

What does a Loan Amortization Spreadsheet Consist of?

A loan amortization spreadsheet consists of a schedule of periodic loan payments. The schedule shows the principal amount and amount of interest for each payment from the start till the loan is paid off at the end of the term.

The repayment process consists of paying the same amount in each periodic payment. However, during the start of the process, most of the amount pays off the interest, while towards the end, most of the amount covers the principal amount.

This, in turn, makes the repayment process comfortable for the borrower and reduces the overall cost of the loan.

The last line of the table shows the borrower’s total interest and principal payments for the entire term.

 

How to Create a Loan Amortization Schedule in Google Sheets

So now that we know the basics, let’s get down to actually building the spreadsheet.

We will first start by creating a basic skeleton of the sheet, in which we will enter the basic timeline, the starting date, interest rate of the loan and the total amount to be paid off.

After this, we will create the table and fill in the first two rows with the appropriate formulas. In the end all we need to do is simply drag down the formulas to fill in the rest of the schedule. The last row should display an amount of 0.0 in the loan balance column.

 

Creating the Basic Outline of the Amortization Schedule Spreadsheet

Let us start with the main spreadsheet outline.

Click here to view our Loan Amortization Schedule Spreadsheet template that we have created for you.

Simply click File -> Make a Copy, so that you can edit and save your own document.

 amortization schedule spreadsheet

The top part of the worksheet (rows 1 and 2) consists of all the values that are going to remain constant throughout the loan period:

  • The Principal amount for the loan, or the total loan amount that needs to be paid off.
  • The interest rate that is to be applied on the loan.
  • The term (in years) or the time period within which the loan is to be repaid.
  • The starting date from when the loan repayment schedule begins.

Let us assume we have a home loan of $100,000 to be repaid in 10 years, with an interest rate of 5%, starting from 06/29/2021. So let us fill these values in the table:

Once this is done, you can start filling in the lower part of the worksheet.

 

Filling in the Main Amortization Table

Now it is time to fill in the main part of the worksheet. Here are the columns you will need to fill:

Period

The Period column will consist of the serial number of the payment period. So for the first installment, the period will be 1, for the second installment it will be 2, etc.

Enter 0 in the first row of this column and 1 in the second row.

How to Create a Loan Amortization Schedule in Google Sheets

Date

The Date column consists of dates when each payment is due. In the first row, the date is the same date as the starting date (of cell E2). After this, each date will be one month apart (since you are paying off each installment on a monthly basis).

So in the first row of this column, enter the formula: =E2

loan amortization spreadsheet

In the second row, enter the formula:

=DATE(YEAR(B7),MONTH(B7)+1,Day(B7))

This will return a date exactly one month after the date in cell B7.

Monthly Payment

Next we need to calculate the monthly payment for each row. To calculate the monthly payment we can use Google Sheets’ PMT function.

The PMT Function

The PMT function calculates the periodic payment for an annuity investment, where the amount and interest rate are constant for each periodic payment.

The syntax for the PMT function is as follows:

PMT(rate, number_of_periods, present_value, [future_value, end_or_beginning])

Here,

  • rate is the rate of interest for the payment period.
  • number_of_periods is the number of payment installments.
  • present_value is nothing but the principal amount.
  • future_value is optional. It is the future value remaining after the final payment has been made.
  • end_or_beginning is also optional. It specifies if the payments are due at the end (0) or start (0) of each period. By default this value is 0.

In our example, here are the values that we will need to plug in:

  • rate: The interest rate in cell B2 is for a whole year, but this parameter calls for the monthly interest rate. So this value will be B2/12.
  • number_of_periods: This parameter will contain the number of periods in months. Since cell E1 contains the period in years, this value will be E1*12
  • present_value: The principal amount is in cell B1, so that is what we will enter in this parameter.

Since you don’t need to pay the monthly fee on the starting date, this value can be 0.00 for the first row.

In the second row, you can enter the following formula:

=PMT($B$2/12, $E$1*12,$B$1)

We locked all the cell references with $ symbols, because we don’t want these references to get updated when we copy the formula down to the rest of the rows.

Remember, the monthly payment is going to be the same amount for each period. So all the rows of this column will basically have the same value.

amortization schedule spreadsheet

Note: The value returned is negative because this is an outgoing payment. In financial terms, outgoing payments are always represented as a negative number while incoming payments are represented as a positive number.

Interest Payment

This column will show the interest to be paid in each installment. To calculate the monthly interest payment, we can use the Google Sheets’ IPMT function.

The IPMT Function

The IPMT function calculates the interest payment for an annuity investment, where the amount and interest rate are constant for each periodic payment.

The syntax for the IPMT function is as follows:

IPMT(rate, period, number_of_periods, present_value, [future_value, end_or_beginning])

Here,

  • rate is the rate of interest for the payment period.
  • period is the amortization period serial number.
  • number_of_periods is the number of payment installments.
  • present_value is the principal amount.
  • future_value is optional. It is the future value remaining after the final payment has been made.
  • end_or_beginning is also optional. It specifies if the payments are due at the end (0) or start (0) of each period. By default this value is 0.

In our example, here are the values that we will need to plug in:

  • rate: The interest rate in cell B2 is for a whole year, but this parameter calls for the monthly interest rate. So this value will be B2/12.
  • period: This will contain the serial number of the payment period. This value is contained in column A for each corresponding row, so for the second row, the value will be A8.
  • number_of_periods: This parameter will contain the number of periods in months. Since cell E1 contains the period in years, this value will be E1*12
  • present_value: The principal amount is in cell B1, so that is what we will enter in this parameter.

Since you don’t need to pay the interest amount on the starting date, this value can be 0.00 for the first row.

In the second row, you can enter the following formula:

=IPMT($B$2/12, A8, $E$1*12,$B$1)

We locked all the cell references with $ symbols, because we don’t want these references to get updated when we copy the formula down to the rest of the rows.

The only reference we did not lock is the second one (representing the period), because this value needs to change with every row.

amortization schedule google sheets

Principal Payment

This column consists of the principal amount that needs to be paid for the current installment. This value can be obtained by subtracting the current interest payment from the current monthly payment value. So, for the second row, enter the formula:

=C8-D8

The first row will again carry the value 0.00.

How to Create a Loan Amortization Schedule in Google Sheets

Loan Balance

This column will hold the amount of loan yet to be repaid. This value can be obtained by subtracting the current principal payment from the previous loan balance.

In the first row, since no money has been paid yet, this value will contain the entire principal amount (or a reference to cell B1).

In the second row, the value will be:

=E8+F7

Since the Principal payment amount is a negative number, we used the ‘+’ sign, instead of ‘-‘.

amortization schedule google sheets

Once you have the first two rows filled in, all that’s left to do is copy down the values to the rest of the rows. Do this by selecting the entire row and pulling down the fill handle to the number of rows needed.

This means, if you have to repay the loan in 10 years, you should have 10*12=120 rows.

loan amortization schedule google sheets

Your last row should have a loan balance of 0.0.

Summarizing the Information in the Last Row

The last row of the amortization table should show the borrower’s total interest and principal payments for the entire term.

The total interest can be calculated by summing up the values in column D . So in cell C129 enter the formula:

=SUM(D7:D)
loan amortization spreadsheet

The principal payments for the entire term is calculated by summing up the values in column E. So in cell C130 enter the formula:

=SUM(E7:E)
loan amortization schedule google sheets

Your amortization schedule is now ready, and since the formulas have been interlinked with the appropriate cell references, any changes in the principal amount, interest rate, term or starting date will get automatically updated everywhere.

Here is the complete Loan Amortization Schedule Spreadsheet template, with all formulas included.

Again, simply click File -> Make a copy. Now you can add in whatever custom data you like and the formulas will automatically update.

This amortization schedule in Google Sheets can be easily customized to any kind of loan. All you need to do is customize the values to suit your requirements. We hope this was helpful.

Nahid

Nahid

Nahid Akhter is a writer, programmer, and online course content creator. She has an MS in Computer Science and has been in the education line for more than 14 years. Her specialization is in programming and Tech-writing, and her areas of interest include Office productivity, Artificial Intelligence, and Web design and development.