Loan Amortization in Spreadsheets
Learn how to build an amortization dashboard in spreadsheets with financial and conditional formulas.
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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
Introduction to Financial Concepts in Google Sheets
FreeIn 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.
Introduction to loan amortization50 xpYour "friend," the loan shark100 xpPaying off your student loan in 1 year100 xpGuess the right payment100 xpCalculation of monthly payments50 xpRequired fields for the PMT() function.50 xpInputs for an annual loan100 xpInputs for a monthly loan.100 xpEntering the PMT() formula100 xpCalculation of interest and principal payments50 xpUsing the IPMT() function100 xpUsing the PPMT() function100 xpAmortization table with two periods100 xp - 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.
Your first amortization schedule50 xpEntering loan terms100 xpFinishing the amortization schedule100 xpAdjusting for annual periods100 xpCumulative financial functions50 xpCumulative functions and opening balance.50 xpWorking with a single cumulative function100 xpAdding cumulative functions to the schedule100 xpMeasuring balance over time50 xpCounting forward periods with EOMONTH()100 xpCounting same month and backward with EOMONTH()100 xpAdding dates and LTV to the schedule100 xp - 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!
Working with conditions and case statements50 xpWorking with IF() functions100 xpSWITCH with baseball100 xpSchool grades with IFS()100 xpAdjusting dates for different time periods50 xpIF() formulas for monthly or bi-weekly periods100 xpIF() formulas to calculate semi-monthly periods100 xpIFS() formula for all payment types100 xpLoan visualizations50 xpAdding data to the chart.100 xpAdding the x-axis100 xpAdding the title100 xpHiding unused cells50 xpUsing FILTER to create a new table without NAs100 xpFixing visualizations after using FILTER100 xpHiding unused values using IFS100 xp - 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.
Fees and Annual Percentage Rate50 xpPractice with APR100 xpYour friend, the payday loan shark.100 xpCalculating APR on the schedule100 xpLump sum payments50 xpManually calculating interest and principal.100 xpModifying closing balances for a lump sum100 xpHiding unused rows review100 xpFixing the payment function100 xpFloating Rates50 xpNegative amortization scenario50 xpImpact of rising interest rates100 xpLonger-term loans and negative amortization100 xpMaximum annual rate100 xpMax interest rate with APR100 xp
In the following tracks
Finance Fundamentals in SpreadsheetsCollaborators
Prerequisites
Financial Modeling in SpreadsheetsBrent Allen
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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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