Loan amortization schedule is an essential tool to visualize one’s loan repayment. If a borrower takes a loan for a certain period at a certain or variable interest, he/she has to pay back the loan within that deadline through a regular payment. Through this loan amortization schedule with a variable interest rate, the borrower will be able to trace his/her loan repayment by calculating the principal paid, interest paid, and remaining loan balance after each payment.
Generally, the interest rate for the loan is fixed. But, for any reason, the interest rate for the loan can be changed anytime during the loan term by the lender. In this case, the person will be charged more or less interest depending on the interest rates which will result in a change in the EMI to pay back the loan within the fixed term.
In this free downloadable template, loan amortization schedule Excel with a variable interest rate, you will be able to insert 10 variable interest rates during your loan repayment and get an automated amortization schedule depending on the interest rates for respective periods.
This template is of great importance to financial planners, investors, bankers, students, and any type of borrowers and lenders who are looking forward to taking or giving loans.
Download Excel TemplateDownload Excel Template
For: Excel 2007 or later
License: Private Use
What Is Loan Amortization Schedule?
A loan amortization schedule is a visualization tool for the loan repayment process. This schedule takes some necessary inputs like loan term, annual percentage rate, loan balance, etc., and shows output values of due payment, principal paid, interest paid, and remaining balance after each payment. So, a borrower will be able to visualize his every payment by visualizing which amount he/she is paying each period how the principal and interest are getting paid at each period, and how the loan balance decreases after each payment.
What Is Variable Interest Rate?
A variable interest rate means that the interest rate of the loan is not fixed over the loan term. Due to many reasons, the interest rate may vary for the borrower within his/her loan term. In this case, the individual interest rates are to be taken into consideration for respective payment periods. So, the EMI would change according to this variable interest rate to pay off the loan within the fixed deadline.
Excel Loan Amortization Schedule with Variable Interest Rate Template
This loan amortization template would take inputs as loan balance, loan term, variable interest rates along with applicable periods, extra payments, etc., and would give an amortization schedule along with a summary table showing the outputs of the total amount paid, total interest paid, estimated interest savings and time saved. A chart will also be generated to visualize the loan balance, principal paid, and interest paid trend.
How to Use This Template
Follow the instructions below to use this template.
- Open the template and insert your input values in the blue shaded area according to the Loan Details column.
- After inserting the initial loan parameters, insert the variable interest rates in the 2nd table’s blue shaded area along with the From and To column values.
- You will get your automated amortization table based on given inputs and a summary chart showcasing your most important results such as the total amount to be paid, total interest to be paid, estimated interest savings, etc.
- You will also get a summary chart displaying the trend for principal paid, interest paid, and loan balance.
Read More: Excel Monthly Amortization Schedule
Loan Amortization Schedule Excel with Variable Interest Rate Tips
- Insert all the loan values properly according to the loan parameters and select the dropdowns carefully.
- Your inserted annual percentage rate would be automatically the first interest rate.
- If you have other interest rates applicable at other periods, insert the variable interest rates one by one, and don’t forget to insert the From and to periods of the respective interest rates.
- If you want to make some irregular extra payments, you have to enter those manually at those specific payment periods.
- If your estimated interest savings value is negative, it means you could not save any interest, rather extra interest has been accrued.
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