For various reasons, a person or a company has to take multiple loans at multiple interest rates for multiple loan tenures. As a result, the payments and payment frequencies can be different for each loan. It becomes too difficult sometimes to check and visualize the loan repayment individually with an individual amortization schedule. Regarding this, a multiple loan amortization schedule template is of great help to visualize all loans in an individual amortization schedule.
In our free downloadable multiple loan amortization schedule Excel template, you will be able to insert your multiple loan parameters and get a final amortization table containing all of your loans. You can also compare refinance and constant recurring payment approaches with your individual multiple loan repayment approach.
This template will be of great help to financial planners, business owners, investors, banks, and all kinds of lenders and borrowers who are looking forward to taking or giving away a loan.
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For: Excel 2007 or later
License: Private Use
⏷What Is Multiple Loan Amortization Schedule?
⏷How Can You Pay off Debt Faster Without Refinancing?
⏵What Is Combined Interest Rate and How to Calculate It?
⏷What Is Refinancing?
⏷Multiple Loan Amortization Schedule Excel Template
⏵How to Use This Template
⏷Multiple Loan Amortization Schedule Excel Template Tips
A multiple loan amortization schedule is an amortization table that helps to visualize the loan repayment procedure of multiple loans in a single table. It shows payments for individual loans depending on individual loan parameters and summarizes the result in a single sheet.
When paying off multiple loans, the first month’s payment remains generally high as you are paying regular payments for all loans. Time by time, some loans get paid off so their regular payments are not needed anymore. So, the regular payments decrease at the end of the loan.
However, if you continue your first month’s payment constantly through all your payment periods, you can pay off debt faster than the normal pay-off process. In this case, when one loan gets paid off, then the total regular payment doesn’t decrease, rather, the paid-off loan’s payment gets invested as some other loan’s extra payment. As a result, the total loan term of multiple loans gets decreased, and that results in lesser interest paid.
So, in this approach, basically, the total of multiple loan amounts is considered as a single loan amount, the interest rate is calculated as a combined interest of multiple loans, and the recurring payment is taken as the first-month payment of multiple loans. With this, you will be able to calculate the time required to pay off the loan.
When working with debt payoff with constant recurring payments, combined interest is to be calculated to get the time required to pay off loans. This is mainly the weighted average interest rate of all present loans.
This is calculated with the following formula:
Combined Interest = Sum of (Individual Loan * Individual Interest Rate) / Sum of Total Loans
For example, if someone takes a loan of $100,000 at a 6% interest rate and $200,000 at a 5% interest rate, the combined interest rate will be:[(100,000*6%)+(200,000*5%)]/(100,000+200,000) = 5.33%
When someone gets indebted to a lender with multiple loans, or when someone finds it so difficult to continue his/her current loans, then upon the consent of the lender s/he can refinance his loan. In this approach, the lender will hive him/her a new agreement with a new loan term and loan interest rate according to his/her current outstanding debt and credit scores.
Generally, with this approach, the borrower can reduce his interest paid amount which results in savings. Through this approach, the borrower gets to reduce his/her loan burden a little bit.
In this template, you will be able to insert your multiple loan parameters. According to the parameters, you will get your multiple loan amortization schedule. Moreover, you can compare your debt payoff if you follow a constant recurring payment approach throughout the loan payments and you will also be able to compare your refinance offer with your current multiple loans from this template.
To use this template efficiently, follow the instructions below.
- Open the file and go to the Loan Input sheet. Insert your multiple loan parameter values and choose the required dropdowns in the blue shaded area.
- After inserting the parameters, you will get your multiple loan amortization schedule and necessary output values on the right side.
- Apart from basic loan repayment approach outputs, you will also get outputs for following the “Paying off your debts without refinancing” approach.
- You can also compare the interest paid values between the approaches and get a comparison chart to compare them quickly.
- To know if refinancing helps in your multiple loans, insert necessary inputs in the blue shaded area of the “Refinance with New Loan Terms and New Payments” table and you will automatically get the necessary outputs at the right side along with a summary chart of live comparison of interest paid for following different approaches.
- Insert all the required inputs properly and choose all the dropdowns properly.
- Follow the inserted notes in the parameters to enter input values properly.
- If you want to get an individual amortization schedule of your loans, you will see that there are several hidden sheets for individual loans. Unhide them and you will see all outputs for individual loans.
- If you insert extra payments, then follow the notes properly to avoid any errors.
- When choosing interest compounding frequency, do not choose any frequency that is lesser than your chosen regular payment frequency. Otherwise, it would show you an error.
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