5 Ways To Create Amortization Schedule In Google Sheets

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Creating an amortization schedule in Google Sheets is a crucial task for anyone managing loans or mortgages. An amortization schedule helps you understand how much of your monthly payment goes towards the principal amount and how much towards interest. In this article, we will explore five different ways to create an amortization schedule in Google Sheets.

Method 1: Using the IPMT and PPMT Functions

The IPMT and PPMT functions in Google Sheets can be used to create an amortization schedule. The IPMT function calculates the interest portion of a loan payment, while the PPMT function calculates the principal portion.

To use these functions, follow these steps:

• Set up a table with the loan details, including the loan amount, interest rate, and loan term.
• Use the IPMT function to calculate the interest portion of the first payment: =IPMT(B2/12, A2, B1)
• Use the PPMT function to calculate the principal portion of the first payment: =PPMT(B2/12, A2, B1)
• Copy the formulas down to create the amortization schedule.

Example:

Method 2: Using the PMT Function

The PMT function in Google Sheets can be used to calculate the monthly payment amount, which can then be used to create an amortization schedule.

To use the PMT function, follow these steps:

• Set up a table with the loan details, including the loan amount, interest rate, and loan term.
• Use the PMT function to calculate the monthly payment amount: =PMT(B2/12, A2, B1)
• Use the formula to calculate the interest and principal portions of each payment: =B2/12*A2 and =B4-B2/12*A2
• Copy the formulas down to create the amortization schedule.

Example:

Method 3: Using a Template

Google Sheets has a built-in template for creating an amortization schedule. To use the template, follow these steps:

• Open a new Google Sheet and click on the "Template" button in the top menu.
• Search for "amortization schedule" and select the template.
• Enter the loan details, including the loan amount, interest rate, and loan term.
• The template will automatically create the amortization schedule.

Method 4: Using a User-Defined Function

You can also create a user-defined function in Google Sheets to create an amortization schedule. To do this, follow these steps:

• Open the script editor by clicking on "Tools" > "Script editor".
• Create a new function by clicking on "File" > "New" > "Function".
• Enter the function code, which will calculate the amortization schedule.
• Save the function and use it in your Google Sheet.

Example Code:

function amortizationSchedule(principal, interestRate, loanTerm) {
  var schedule = [];
  for (var i = 0; i < loanTerm; i++) {
    var interest = principal * interestRate / 12;
    var principalPayment = principal - interest;
    schedule.push([i + 1, interest, principalPayment, principal]);
    principal -= principalPayment;
  }
  return schedule;
}

Method 5: Using Add-ons

There are several add-ons available in the Google Workspace Marketplace that can help you create an amortization schedule in Google Sheets. To use an add-on, follow these steps:

• Open the Google Workspace Marketplace by clicking on the "Add-ons" button in the top menu.
• Search for "amortization schedule" and select an add-on.
• Follow the instructions to install and set up the add-on.
• Use the add-on to create the amortization schedule.

Conclusion

Creating an amortization schedule in Google Sheets can be done in several ways. You can use the IPMT and PPMT functions, the PMT function, a template, a user-defined function, or an add-on. Each method has its own advantages and disadvantages, and the choice of method will depend on your specific needs and preferences. By following the steps outlined in this article, you can create an amortization schedule in Google Sheets that will help you manage your loans and mortgages effectively.

We hope this article has been helpful in explaining the different ways to create an amortization schedule in Google Sheets. If you have any questions or need further clarification, please don't hesitate to ask. Share your thoughts and experiences in the comments section below!