Loan amortization involves paying off a loan through regular installment payments over a set period. Installment payments are equal and consist of a principal (the amount borrowed) and interest (the cost of borrowing money)—with a larger portion of the payment going toward interest in the early years of the loan, and a larger portion going toward the principal as the loan matures.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, and portfolio managers.
Loan Amortization is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Math for Finance course.
You can also explore other related templates such as—Present Value of Annuity, Present Value (PV), and Future Value of Annuity.