A client just asked me if I could make him a tool to calculate a loan… luckily this tool already exists. The nonprofit business counselling organization SCORE has a very nice Excel spreadsheet
http://www.score.org/downloads/Loan%20Amortization%20Schedule.xls If you don’t have Excel, you can open it in google docs or download the OpenOffice suite at openoffice.org.
What does a loan amortization schedule do? It calculates what your payments and interest are over the term of a loan. You enter the loan amount, interest, number of years, how often you pay, and it calculates. For a $50,000 loan at 7 percent interest for five years paying monthly, you would pay $909 each month, and a total of $9,404 in interest. For a three-year loan, you’d pay $1,543.85 and only $5,579 in interest. Pretty neat, huh?