![]() ![]() The formula states that if the opening balance is less than 0, then the total payment value will be shown as 0.Ħ. Here we can use the IF function to clean the errors. Notice that there are some error messages starting from period 6 because the opening balance is 0. Check if the closing balance for period 5 = 0 to ensure correct formulas and numbers are being used.ĥ. Copy all formulas from cell E29 to E33 to the next column, then copy everything to the right. The opening balance for period 2 is the closing balance for period 1, which is =E33.Ĥ. The closing balance is the opening balance plus the principal payment being made, which is =E29+E32. The principal payment is the difference between total payment and interest payment, which is =E30-E31. Next, use the IPMT formula to find out the interest payment for the first period =IPMT($B$27,E28,$B$26,$B$25).ģ. ![]() In cell E29, enter =E28+1 and fill the formula to the right. In cell E28, input the period we are in, which is 1. The formula calculates the payment amount using the loan amount, term, and interest rate stated in the assumption section.Ģ. Then, we can use the PMT formula to calculate the total payment for the first period =PMT($B$27,$B$26,$B$25). The opening balance in our debt schedule is equal to the loan amount of $5 million, so in cell E29, we enter =B25 to link it to the assumption input. In this example, we assume the debt to be $5,000,000, the payment term to be 5 years, and the interest rate to be 4.5%.ġ. First, we need to set up the model by inputting some debt assumptions. We can use Excel’s PMT, IPMT, and IF formulas to create a debt schedule. Updated How to Create a Debt Schedule with PMT, IPMT, and IF? ![]()
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