Loan repayment table creation
How to prepare the bank loan repayment table
Everyone need to take the bank loan over their life so we need to gather the knowledge on how to calculate the loan repayment table.
Once we paid the equal month installment, there should be the interest portion and capital portion in monthly installment. Interest portion will be go down that mean first month you need to pay high interest and it will reduce in next coming months. at the same time you will pay less capital portion in first monthly installment and it will increase in next coming months.
Usually we used the three excel formula to calculate the monthly installment, interest portion and capital portion,
PMT - This formula use for computing the monthly installment amount
IPMT - This formula use for finding the interest portion in monthly installment
PPMT - This formula use for gathering the capital portion in monthly installment
For example.
You need to take 10,00,000.00 loan form commercial bank with interest annual rate 15% and loan repayment duration 5 year.
The below video will guide you that how to work out the loan repayment table
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