If you are looking for **Loan Amortization Schedule Excel with Moratorium Period**, you have come to the right place. Here, we will walk you through **4 **easy steps to do the task smoothly.

## Download Practice Workbook

## What Is Loan Amortization Schedule and Moratorium Period?

**Loan Amortization** is a **debt **or **loan** that pays off in **installments** all round of the whole term of the loan. It requires **circular monthly payments**. Every month, a part of the payment proceeds to the **loan’s principal**, and the other parts of it proceed to **interest**. **Loan Amortization** is also known as an **installment loan**. **Equal monthly payments **are required for a full **Amortization Loan.**

A **Moratorium Period** is a period in a loan term that the borrower can** hold up **or **omit a **portion, or the whole **EMI **(**Equated Monthly Installment)**. It also means that the course of payments from the** loan bearer **to the bank or lender is** postponed** until the moratorium ends.

## Steps to Create Loan Amortization Schedule with Moratorium Period in Excel

The following **Loan Details** table contains loan properties. We will use this table to create a **loan amortization schedule Excel with moratorium period**. To do so, we will go through **4 **easy steps. Here, we used **Excel 365**. You can use any available Excel version.

### Step-1: Calculating Moratorium Period to Create Loan Amortization Schedule

First, we will calculate the **EMI**((**Equated Monthly Installment)** by using the **IF** and **PMT **functions.

**Steps:**

- In the beginning, we will type the following formula in cell
**C14**.

`=IF(B14="Moratorium Period",0,PMT($D$8/$D$7,$D$7*$D$6,$D$5))`

**Formula Breakdown**

**PMT($D$8/$D$7,$D$7*$D$6,$D$5) →**depending on**fixed****payment**and a**fixed interest rate**the**PMT**function will return**payment**of the loan amount.**$D$8/$D$7→**is the**rate**that will calculate**Interest Rate**.**$D$7*$D$6 →**is**npr**, it denotes**total periods of payments**for the loan.**$D$5**→ is**pv**that is the**Loan Amount**.**PMT(10%/6,6*1,20,000) →**Therefore, it becomes**Output: -$3530**

**IF(B14=”Moratorium Period”,0,PMT($D$8/$D$7,$D$7*$D$6,$D$5))**→ the**IF**function makes a**logical comparison**between a value and what we expect.**IF(B14=”Moratorium Period”,0,-$3530))**→ returns**0**when the logical statement is**True**, otherwise it returns**-$3530**.**Output: $0****Explanation:**Since the logical statement is**True**, the**IF**function returns**$0**as**EMI**for**Moratorium Period**.

- After that, press
**ENTER**. Then, you can see the result in cell**C14**. - Next, we will
**drag down**the formula with the**Fill Handle tool**.

As a result, you can see the complete **EMI **column.

**Read More: ****Car Loan Amortization Schedule in Excel with Extra Payments**

### Step-2: Calculating Loan Interest

Next, we will calculate the Interest using the **IF** and **IPMT** functions.

**Steps:**

- First, we will type the following formula in cell
**D14**.

`=IF(B14="Moratorium Period",0,IPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5))`

**Formula Breakdown**

**IPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5)→**depending on**annual, fixed**payment &**fixed interest rate**it will**interest payment**of annual investment.**$D$8/$D$7→**is the**rate**, means**Interest Rate**.**B14**is the**period**for which we want to find the interest and it has to be within the limit of**1**to**nper**.**$D$7*$D$6 →**is**npr**, which is received**payments in total**for the loan.**$D$5**→ is**pv**that is the**Loan Amount**.**IPMT(10%/6,”Moratorium Period”,6*1,20,000) →**Therefore, it becomes**Output: #VALUE!****Explanation:**Here,**“Moratorium Period”**is the**period**, therefore, the**IPMT**function returns an**error**. This is because the**period**must be a**numerical value**.**IF(B14=”Moritorium Period”,0,IPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5))**→ the**IF**function makes a**logical comparison**between a value and what we expect.

**IF(B14=”Moratorium Period”,0,#VALUE!))**→ returns**0**when the logical statement is**True**, otherwise it returns**#VALUE!**.**Output: $0****Explanation:**Since the**logical statement**is**True**, the**IF**function returns**$0**as**Interest**for the**Moratorium Period**.

- Afterward, press
**ENTER**. Then, you can see the result in cell**D14**. - Moreover, we will
**drag down**the formula with the**Fill Handle tool**

Therefore, you can see the complete** Interest** column.

**Read More: ****Excel Simple Interest Loan Calculator with Payment Schedule**

### Step-3: Calculating Principal Amount to Create Loan Amortization Schedule

At this point, we will calculate **Principal **by using the combination of **IFERROR** and **PPMT** functions.

**Steps:**

- Firstly, we will type the following formula in cell
**E14**.

`=IFERROR(PPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5),0)`

**Formula Breakdown**

**PPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5) →**it will return the**payment**on a principal based on the given values.**$D$8/$D$7→**is the**rate**, means**Interest Rate**.**B14**→ is the**period**for which we want to find the interest and has to be within the limit of**1**to**nper**.**$D$7*$D$6 →**is**npr**, which is the**received payments in total**for the loan.**$D$5**→ is**pv**that is the**Loan Amount**.**PPMT(10%/6,”Moratorium Period”,6*1,20,000) →**Therefore, it becomes**Output: #VALUE!****Explanation:**Here,**“Moratorium Period”**is the**period**, therefore, the**PPMT**function returns an**error**. This is because the**period**must be a**numerical value**.

**IFERROR(PPMT($D$8/$D$7,B14,$D$7*$D$6,$D$5),0) →**the**IFERROR**function returns**0**, when a function returns an error, otherwise, it returns the**value of the function**.**IFERROR(PPMT(#VALUE!,0)**→Therefore, this becomes**Output: $0.00****Explanation:**Here, the**PPMT**function returns an**error**, as a result, the**IFERROR**function handles the**error**and returns**Principal**as**$0.00**for**Moratorium Period**.

- Secondly, press
**ENTER**. Then, you can see the result in cell**E14**. - Finally, we will
**drag down**the formula with the**Fill Handle tool**.

Then, you can see the complete **Principal** column.

**Read More: ****Student Loan Payoff Calculator with Amortization Table in Excel**

### Step-4: Calculating Remaining Balance

Finally, we will calculate Balance by using **the SUM function**.

**Steps:**

- First of all, we will type the following formula in cell
**F14**.

`=SUM(F13,E14)`

**Formula Breakdown**

**SUM(F13,E14)**the**SUM**function adds values of the cells.**SUM(20,000,0)**Hence, it becomes**Output: $20,000****Explanation:**Here,**$20,000**is the**Balance**for**Moratorium Period**.

- At this point, press
**ENTER**. Then, you can see the result in cell**F14**. - Moreover,
**drag down**the formula with the**Fill Handle tool**.

As a result, we can see the complete** schedule **for **Loan Amortization** **with moratorium period**.

As the **Balance** for the last installment is **$0** in cell **F20**, the schedule is complete.

## Practice Section

You can download the above** Excel **file to practice the explained methods.

## Conclusion

Here, we tried to show you **4** steps for **Loan Amortization Schedule Excel with Moratorium Period**. Thank you for reading this article, we hope this was helpful. If you have any queries or suggestions, please let us know in the comment section below. Please visit our website **Exceldemy** to explore more.

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