How to set up an amortization schedule in excel

how to set up an amortization schedule in excel

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Car Payment Calculator

About.com

Calculate Car Payments and Interest Costs

Need to know how much it will cost to buy a new auto? The car payment calculator will show you what your monthly payments will be if you borrow money to purchase an auto. What’s more, you’ll see what the vehicle truly costs after you account for the interest you’ll pay on the loan.

About.com’s free car payment calculator includes an amortization table so you can understand how your loan works. This is a set of numbers that breaks down all of the details of your auto loan for every month, including:

  • Each month’s payment
  • How much of each payment goes towards reducing your loan balance
  • How much of each payment is your interest cost
  • Total amount remaining on your loan
  • Total amount of interest

    paid up to any point

If you want, you can even copy this information into a spreadsheet to further slice and dice the numbers. Tip: if you’re using Excel, you’ll have to select everything, and then use Data --> Text to Columns to split the numbers up into separate columns.

The car payment calculator is already set up for a 5 year loan. There are longer term loans available, but you should generally avoid loans that last longer than 5 years. Sure, you’ll get a lower monthly payment with those loans, but you’ll pay down your loan balance slowly – so slowly that you risk being upside-down on the loan (an unfortunate situation in which you owe more on your auto than it’s worth). Then you might find yourself in the difficult position of trying to sell your car while there's still a loan outstanding.

Car Payment Calculator

Source: banking.about.com

Category: Bank

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