How Do You Create An Amortization Chart?
An amortization schedule is extremely helpful in managing personal debt. An amortization schedule will help you determine how much your monthly debt payment will be for a certain amount of debt at a given interest rate; how much of your monthly debt payment is used to pay off principal versus interest; and how much you can save in interest expense by paying off the debt early. Creating an amortization schedule is easy with Microsoft Excel. Enter the amount of debt you owe, the interest rate and the repayment period from your promissory note into Excel. The promissory note is the document you signed with your lender when you took out the loan. If you did not save a copy of the promissory note, you should request a new copy from your lender. Create the following five column headers in Excel: Beginning Balance, Payment, Interest, Principal, Ending Balance. Suppose that you have a $50,000 loan with an annual interest rate of 8 percent with monthly payments and a 20-year repayment period. E
