You can download this Amortization Formula Excel Template here – Amortization Formula Excel TemplateĪ salaried person took a home loan from a bank of $100,000 at the Rate of interest of 10% for a period of 20 years. Now, let’s see an example to understand the calculation. Monthly payment, i.e., can be calculated by the below formula:-Īnd the formula for interest is as follows:.
Now, let us see how to calculate Amortization manually. Amortization can be done manually or by Excel formula, for both are different. Amortization calculation depends on the principal, the Rate of interest, and the time period of the loan. The amount paid monthly is known as EMI, which is equated to monthly installments.ĮMI has principal and interest components calculated by the amortization formula. Amortization Formula in Excel (With Excel Template)Īmortization is paying off debt amount periodically until the loan principal reduces to zero.
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