How to calculate the principla in an amortization schedule

RMSistight

Golden Member
Oct 2, 2003
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How do you calculate the principal in an amortization schedule? I can't seem to figure it out.
 

robh23

Banned
Jan 28, 2004
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assuming interest is end of year,

start balance of year 1 x interest rate in loan = interest payment in year one.

principle red in year one = loan payment - interest payment.

year 2 start principle balance = previous years pricinple - previous year's principle payment.

do it on excel easy. i think there is a formula as well.