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Loan calculator

Amortization Calculator Excel Equation

Amortization Calculator Excel Equation

Amortization Calculator

Calculate your loan amortization using Excel formulas.

Loan Amount ($) Annual Interest Rate (%) Loan Term (years) Monthly Payment ($) Total Payment ($) Total Interest ($)

This amortization calculator helps you calculate your monthly payments, total payment, and total interest based on loan amount, interest rate, and loan term using Excel formulas.

Amortization Formula

The Excel equation for calculating monthly payments is:
PMT = (Loan Amount * Interest Rate / 12) / (1 - (1 + Interest Rate / 12) ^ -Loan Term)

Example Calculation

For a loan amount of $50,000, an interest rate of 5%, and a 20-year term, your monthly payment will be calculated as follows.

Why It Matters

Understanding how amortization works helps you plan your finances and budget for future payments.

Smart Strategy

Use this tool to visualize how different loan terms and interest rates impact your payments and overall cost.

function calculateAmortization() { const loanAmount = parseFloat(document.getElementById(“loanAmount”).value); const interestRate = parseFloat(document.getElementById(“interestRate”).value) / 100; const loanTerm = parseInt(document.getElementById(“loanTerm”).value); if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTerm) || loanAmount <= 0 || interestRate <= 0 || loanTerm <= 0) { alert("Please enter valid values for all fields."); return; } const monthlyInterestRate = interestRate / 12; const numberOfPayments = loanTerm * 12; const monthlyPayment = loanAmount * monthlyInterestRate / (1 – Math.pow(1 + monthlyInterestRate, -numberOfPayments)); const totalPayment = monthlyPayment * numberOfPayments; const totalInterest = totalPayment – loanAmount; document.getElementById("monthlyPayment").value = monthlyPayment.toFixed(2); document.getElementById("totalPayment").value = totalPayment.toFixed(2); document.getElementById("totalInterest").value = totalInterest.toFixed(2); } function resetAmortization() { document.getElementById("loanAmount").value = ""; document.getElementById("interestRate").value = ""; document.getElementById("loanTerm").value = ""; document.getElementById("monthlyPayment").value = ""; document.getElementById("totalPayment").value = ""; document.getElementById("totalInterest").value = ""; }

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