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Loan Amortization in Spreadsheets

Learn how to build an amortization dashboard in spreadsheets with financial and conditional formulas.

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4 Hours13 Videos56 Exercises3,674 Learners

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Course Description

A loan amortization schedule sounds like something that's only used by bankers and financial traders, right? Wrong! In this course, we'll be looking at the key financial formulas in Google Sheets that you can use to investigate your own loans, like student loans, car loans, and mortgages. We'll build up a dashboard in Google Sheets which uses visualizations and conditional formulas to produce presentation-ready spreadsheets which will impress any finance manager!
  1. 1

    Introduction to Financial Concepts in Google Sheets

    Free

    In this first chapter, you will learn all the basic financial formulas in Google Sheets that are needed to build up your first loan amortization spreadsheet for a student loan. This chapter will introduce calculations for principal payment, interest and principal at a given point in time.

    Play Chapter Now
    Introduction to loan amortization
    50 xp
    Your "friend," the loan shark
    100 xp
    Paying off your student loan in 1 year
    100 xp
    Guess the right payment
    100 xp
    Calculation of monthly payments
    50 xp
    Required fields for the PMT() function.
    50 xp
    Inputs for an annual loan
    100 xp
    Inputs for a monthly loan.
    100 xp
    Entering the PMT() formula
    100 xp
    Calculation of interest and principal payments
    50 xp
    Using the IPMT() function
    100 xp
    Using the PPMT() function
    100 xp
    Amortization table with two periods
    100 xp
  2. 2

    Creating an Amortization Schedule

    This chapter is focused on extending the payment formulas to the full length of a loan. By the end of the chapter, you will be able to create a fully functional schedule and will be able to verify the accuracy of the calculations on the schedule.

    Play Chapter Now
    Your first amortization schedule
    50 xp
    Entering loan terms
    100 xp
    Finishing the amortization schedule
    100 xp
    Adjusting for annual periods
    100 xp
    Cumulative financial functions
    50 xp
    Cumulative functions and opening balance.
    50 xp
    Working with a single cumulative function
    100 xp
    Adding cumulative functions to the schedule
    100 xp
    Measuring balance over time
    50 xp
    Counting forward periods with EOMONTH()
    100 xp
    Counting same month and backward with EOMONTH()
    100 xp
    Adding dates and LTV to the schedule
    100 xp
  3. 3

    Making a Loan Amortization Dashboard

    This chapter is about taking the amortization schedule that you created in Chapter 2 and converting it into a fully functional loan dashboard which can be used by end users. You will create line and bar graphs, as well as using input controls and cell protection to ensure that end users will only be able to change what you want them to change!

    Play Chapter Now
    Working with conditions and case statements
    50 xp
    Working with IF() functions
    100 xp
    SWITCH with baseball
    100 xp
    School grades with IFS()
    100 xp
    Adjusting dates for different time periods
    50 xp
    IF() formulas for monthly or bi-weekly periods
    100 xp
    IF() formulas to calculate semi-monthly periods
    100 xp
    IFS() formula for all payment types
    100 xp
    Loan visualizations
    50 xp
    Adding data to the chart.
    100 xp
    Adding the x-axis
    100 xp
    Adding the title
    100 xp
    Hiding unused cells
    50 xp
    Using FILTER to create a new table without NAs
    100 xp
    Fixing visualizations after using FILTER
    100 xp
    Hiding unused values using IFS
    100 xp
  4. 4

    Non-standard amortization schedules

    The final chapter introduces real-world adjustments which are made to amortization schedules. These sorts of adjustments include upfront fees and lump sum payments. The course finishes by talking about floating rate mortgages, the maximum interest rate on floating loans and negative amortization.

    Play Chapter Now
    Fees and Annual Percentage Rate
    50 xp
    Practice with APR
    100 xp
    Your friend, the payday loan shark.
    100 xp
    Calculating APR on the schedule
    100 xp
    Lump sum payments
    50 xp
    Manually calculating interest and principal.
    100 xp
    Modifying closing balances for a lump sum
    100 xp
    Hiding unused rows review
    100 xp
    Fixing the payment function
    100 xp
    Floating Rates
    50 xp
    Negative amortization scenario
    50 xp
    Impact of rising interest rates
    100 xp
    Longer-term loans and negative amortization
    100 xp
    Maximum annual rate
    100 xp
    Max interest rate with APR
    100 xp

In the following tracks

Finance Fundamentals in Spreadsheets

Collaborators

Chester Ismay
Marianna Lamnina

Prerequisites

Financial Modeling in Spreadsheets
Brent Allen HeadshotBrent Allen

Financial Spreadsheets Specialist

Brent has held a wide variety of roles across a wide array of businesses ranging from world-class banking institutions to local real estate companies. With over 20 years of experience in spreadsheets and programming, along with an MBA from Queen's University and a Chartered Professional Accountant designation, he has built hundreds of financial spreadsheets and processes over his career. Hailing from Toronto, he supports the local basketball team, commiserates the local hockey team and knows more about Gen 1 Pokemon than he cares to admit to.
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