How do i make an amortization schedule?
Unless you know excel and finance not worth trying. Here is a little explanation. The amount you borrow is your present value. Your future value is zero bc in the future at the maturity of the loan you want your loan to be paid. Now you will use the PMT formula in excel to calculate the monthly payments. Remember the interest rate should be monthly, so if you are given a yearly interest rate you should divide it by 12. Example: Borrow 50k, 8%, 15yr Loan. Your Monthly pmt in Excel will be derived by this Formula: =PMT(0.08/12,12*15,-50000,0,0) which is $477.83 Here is how the Amortization works BegBal, pmt, Interest, Principal, EndBal 50k, $477.83, Begbal*.08/12, interest-Pmt, BegBal- Principal EndBal in second line use same process. Good luck.
