Calculation of interest and principal payments

Loan Amortization in Google Sheets

Brent Allen

Instructor

Interest on loan decreasing over time

Loan Amortization in Google Sheets

Payment is made up of principal and interest

Loan Amortization in Google Sheets

The IPMT and PPMT Functions

Interest Payments

=IPMT(Interest Rate, Current Period, Total Amortization Periods, Present Value, 
     [Future Value],[End or Beginning])
  • Only additional argument is the Current Period.

Principal Payments

=PPMT(Interest Rate, Current Period, Total Amortization Periods, Present Value, 
 [Future Value],[End or Beginning])
  • Functions take the same arguments for Interest and Principal!
Loan Amortization in Google Sheets

Interest and Principal Function Example

Interest and principal function example in Google Sheets.

  • 6% interest rate, $100,000 principal, 10 years
  • $6,000 interest in period 1.
  • $5,544.79 interest in period 2.
Loan Amortization in Google Sheets

Time to use the financial functions!

Loan Amortization in Google Sheets

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