In this article, you will learn about three quick steps on how to create a progressive payment calculator in Excel. We will be using the Microsoft 365 version. However, you can use any version of Microsoft Excel and follow this tutorial.
Concept of Progressive Payment
When you want to buy a property that is under construction and take loans from the bank, you do not need to pay back the loans in full installments. The installment rises as the property completion rate gets higher. Moreover, you will only need to pay the interest amount for the beginning period of the project.
Create Progressive Payment Calculator in Excel: with Easy Steps
We will show you two quick steps to create a progressive payment calculator. In the first step, we will set up the dataset for our calculation. After that, we will use several formulas to complete the payment calculation process.
Step 1: Setting Up Dataset
We will type in all the fields in this first step. Firstly, we will create the loan details section. After that, we will create the section for the progressive payment calculator details.
- To begin with, create the following fields.
- Afterward, type the following section with the five columns consisting of “Estimated Time (Months)”, “Particulars”, “Percentage”, “Amount”, and “Monthly Payment”.
Step 2: Calculating Progressive Payment
We will start by calculating the total amount of bank loans obtained. After that, we will use the percentage completion amount to calculate the payment values. Additionally, we will use the SUM function in this section to calculate various values.
- Firstly, type the property price, cash amount, interest rate, and loan tenure.
- Secondly, insert the following formula to find the bank loan amount.
- Thirdly, type the values for the first three columns.
- Fourthly, use this formula in cell E11 and drag the Fill Handle to fill the formula downward.
- After that, insert this formula to calculate the monthly payment.
- Firstly, we are using a dynamic range inside the SUM function. This is the main step for finding the progressive payment.
- Secondly, the interest rate is provided per annum. Therefore, we are dividing it by 12 to find the monthly interest rate.
- Thirdly, our cash amount is $40,000 and we do not need to pay anything until this value depletes. So, we only calculate it from row 15. You should modify this to fulfill your requirements.
- Lastly, we multiply the above two values by the property price to return the monthly payment.
- Finally, AutoFill the formula to finish creating the progressive payment calculator in Excel.
Download Practice Workbook
You can download the Excel file from the link below.
We have shown you quick steps on how to create a progressive payment calculator in Excel. If you face any problems regarding these methods or have any feedback for me, feel free to comment below.
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