There are a few basic, yet fundamental, real estate modeling skills you must master before anyone will take you seriously as a real estate professional. Building a mortgage amortization schedule is one of them. Show
Virtually every model you create will require this skill – or some variation of what you do when you build an amortization table. And the more proficient you are at calculating debt service, bifurcating out principal and interest, and knowing the outstanding loan balance at any given period, the more employable you are! Are you an Accelerator member? Access this Watch Me Build video with source files here. Not yet an Accelerator member? Consider joining the real estate financial modeling training program used by top real estate companies and elite universities to train the next generation of CRE professionals.  Two Amortization Table Tutorials in OneIn this post I provide two video tutorials, with the Excel worksheets combined into one Excel workbook. The first tutorial is an in-depth ‘Watch Me Build’ video on how to build a fully dynamic amortization table. The second video tutorial is short and sweet – call it a bonus video, where I build a simple mortgage amortization schedule in Excel in under 90 seconds. The in-depth Watch Me Build is a 25 minute behemoth, showing you how to build a more complex, dynamic amortization table in Excel. It includes many of the features you might find in an amortization table in an institutional model. I also share various modeling techniques that are applicable across modeling tasks. I should note that in the video I refer to a few techniques addressed in-depth in our real estate financial modeling Accelerator program. So bear with me if a concept or two isn’t fully explained. Of course, if you’re watching these tutorials you’ll most definitely find great value in becoming an Accelerator member. So consider checking that out when you have a moment. And with that, go ahead and download the corresponding Excel file (tutorial and completed files) below and do your best to follow along. Then try to re-create the models on your own. Follow Along Using the Excel Files from the VideosTo get the most out of these two tutorials, I highly recommend you download the Excel worksheets I use in the videos. To make this ‘Watch Me Build’ tutorial accessible to everyone, it is offered on a “Pay What You’re Able” basis with no minimum (enter $0 if you’d like) or maximum (your support helps keep the content coming – similar real estate course modules sell for $100 – $300+). Just enter a price together with an email address to send the download link to, and then click ‘Continue’. If you have any questions about our “Pay What You’re Able” program or why we offer our models on this basis, please reach out to either Mike or Spencer. Watch Me Build a Fully Dynamic Mortgage Amortization Schedule in ExcelIn this 25-minute Watch Me Build style video tutorial, I show you how to:
Inputs: Original Loan Balance, Interest Rate, Amortization, Periods, Term, Interest-Only Period, Curtailment, Origination Fees, and Points. Formulas: Interest-Only Payment, Amortizing Payment, Payoff @ Loan Maturity, Lender Yield (APR), Period, Beginning Balance, Payment, Interest, Principal, Payoff, Curtailment, Lender Cash Flow, and Ending Balance. Bonus Tutorial: Building a Simple Amortization Table in Under 90 SecondsIn this tutorial you’ll get down to the basics. You’ll be able to calculate loan payment, starting and ending balance, and learn to bifurcate the debt service payment to determine what proportion goes to interest versus principal. The model is not dynamic, and many wrinkles you see in modeling debt are not covered here, like they are in the more comprehensive video, but if you’re in a hurry this is a great start. Inputs: Loan Amount, Interest Rate, Term. Formulas: Payment, Period, Starting Balance, Principal, Interest, and Ending Balance. Quick Note for Accelerator MembersAre you an Accelerator member? Read further. If not, consider joining the Accelerator. To get the most out of this tutorial, you might review the following courses/lectures together with this Watch Me Build video:
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How do you do an amortization schedule in Excel?Enter the corresponding values in cells B1 through B3. In cell B4, enter the formula "=-PMT(B2/1200,B3*12,B1)" to have Excel automatically calculate the monthly payment. For example, if you had a $25,000 loan at 6.5 percent annual interest for 10 years, the monthly payment would be $283.87.
Does Microsoft Excel have an amortization schedule?Microsoft's Excel loan amortization schedule
As you can see, it has a few boxes to enter the loan information, such as loan amount and interest rate. Then it contains an amortization table with information about each monthly payment. It also helps you see how many of your dollars are going to principal vs. interest.
How do I make a mortgage amortization schedule?Starting in month one, take the total amount of the loan and multiply it by the interest rate on the loan. Then for a loan with monthly repayments, divide the result by 12 to get your monthly interest. Subtract the interest from the total monthly payment, and the remaining amount is what goes toward principal.
Can I make my own amortization schedule?You can build your own amortization schedule and include an extra payment each year to see how much that will affect the amount of time it takes to pay off the loan and lower the interest charges.
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How to build a mortgage amortization schedule in excel
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