Loan Amortization in Google Sheets

Overview

Learn how to build an amortization dashboard in Google Sheets with financial and conditional formulas.

A loan amortization schedule is often perceived as a tool exclusively for bankers and financial traders. However, this course aims to debunk this misconception by introducing the practical applications of amortization schedules in everyday life. We will explore the fundamental concepts of loan amortization and its relevance not just in the banking sector, but for individual financial management as well.

Mastering Financial Formulas in Google Sheets

This course delves deep into the world of key financial formulas within Google Sheets. Participants will learn how to utilize these formulas to examine and manage various types of personal loans, such as student loans, car loans, and mortgages. The focus will be on empowering users with the skills to make informed decisions about their loans and financial health by leveraging the powerful features of Google Sheets.

Creating a Dynamic Loan Dashboard

One of the highlights of this course is the development of a comprehensive dashboard in Google Sheets. This dashboard will incorporate advanced techniques such as visualizations and conditional formulas. Participants will gain hands-on experience in creating presentation-ready spreadsheets that are not only functional but also visually appealing. These skills are designed to impress finance managers and elevate your understanding of financial management to a professional level.

Syllabus

Introduction to Financial Concepts in Google Sheets

In this first chapter, you will learn all the basic financial formulas in Google Sheets that are needed to build up your first loan amortization spreadsheet for a student loan. This chapter will introduce calculations for principal payment, interest and principal at a given point in time.

Creating an Amortization Schedule

This chapter is focused on extending the payment formulas to the full length of a loan. By the end of the chapter, you will be able to create a fully functional schedule and will be able to verify the accuracy of the calculations on the schedule.

Making a Loan Amortization Dashboard

This chapter is about taking the amortization schedule that you created in Chapter 2 and converting it into a fully functional loan dashboard which can be used by end users. You will create line and bar graphs, as well as using input controls and cell protection to ensure that end users will only be able to change what you want them to change!

Non-standard amortization schedules

The final chapter introduces real-world adjustments which are made to amortization schedules. These sorts of adjustments include upfront fees and lump sum payments. The course finishes by talking about floating rate mortgages, the maximum interest rate on floating loans and negative amortization.