🔴 Too lazy to build it yourself? Get it for $1 here: https://payhip.com/b/KrH8k For more templates 👉 https://payhip.com/JopaExcel - - A loan calculator, or Amortization Schedule, is a table that details every single payment you will make over the life of a loan. It works by mathematically breaking down your fixed monthly payment into the two core components: Interest Paid and Principal Paid. The key to its function is understanding that over time, the interest portion of your payment decreases, and the principal portion increases, until your Remaining Balance hits zero. Principal: The original amount of money you borrowed. Annual Interest Rate: The yearly cost of borrowing, which we convert to a monthly rate. Loan Term: The total length of time (e.g., 5 years, 30 years) you have to repay the loan. APR (Annual Percentage Rate): The true annual cost, factoring in all fees (though our basic calculator focuses on rate). Amortization: The process of paying off a debt over time with regular, equal payments. We rely on three powerful Excel financial functions to build the schedule: Payment: This calculates your fixed monthly payment based on the loan's interest rate, total number of payments, and the principal amount. This payment amount remains constant throughout the loan's life. Interest Payment: Calculates the exact interest portion of a payment for any given period. This value changes with every row as your remaining balance shrinks. Principal Payment: Calculates the exact principal portion of a payment for any given period. This value increases as the interest payment decreases. #JopaExcel #Howto #Excel