Mortgage Amortization Calculator in Excel

Being adept in personal finance and Excel, can you guide me in creating a mortgage amortization calculator that projects monthly payments, interest amounts, and balance over the life of the loan?

Certainly! I can help you create a mortgage amortization calculator using Excel. Here's a step-by-step guide: 1. Open Excel and create a new blank spreadsheet. 2. Set up the following column headings in cells A1 to D1: Payment Number, Payment Date, Payment Amount, and Principal. 3. Starting from cell A2, enter consecutive numbers to represent each payment number (1, 2, 3, and so on) in column A. 4. In cell B2, enter the starting date of the loan or the first payment date, then drag the fill handle (a small square at the bottom right corner of the cell) down to autofill the remaining dates for all payments. 5. In any empty cell, enter the loan amount (e.g., $200,000) and assign it to the variable "LoanAmount." 6. In another empty cell, enter the annual interest rate (e.g., 4.5%) and assign it to the variable "AnnualInterestRate." 7. In another empty cell, enter the mortgage term in years (e.g., 30) and assign it to the variable "LoanTermYears." 8. Next, calculate the monthly interest rate by dividing the annual interest rate by 12 and assigning it to the variable "MonthlyInterestRate." In an empty cell, enter the formula "=AnnualInterestRate/12" and assign it to "MonthlyInterestRate." 9. Calculate the number of payments using the formula "=LoanTermYears*12," and assign it to the variable "NumberOfPayments." 10. Calculate the monthly payment using the formula "=PMT(MonthlyInterestRate, NumberOfPayments, -LoanAmount)" and assign it to the variable "MonthlyPayment." The negative sign in front of "LoanAmount" accounts for the loan being a liability. 11. Enter the monthly payment amount in cell C2, then drag the fill handle down to autofill the remaining payment amounts for all payments. 12. In cell D2, enter the formula "=MonthlyPayment-(LoanAmount*(MonthlyInterestRate/12))" to calculate the principal payment for the first payment. Drag the fill handle down to autofill the remaining principal amounts for all payments. 13. In an empty cell, enter the formula "=LoanAmount-D2" to calculate the remaining balance after the first payment. Drag the fill handle down to autofill the remaining balance amounts for all payments. 14. To format the cells as currency (optional), select the payment amount, principal, and balance columns (cells C2:D2), go to the "Home" tab, click on the "$" icon in the "Number" group, and select the desired currency format. Congratulations, you've created a mortgage amortization calculator in Excel! You can now change the loan amount, interest rate, or loan term to see the updated payment amounts, interest amounts, and remaining balance over the life of the loan.