From the course: Excel: Financial Functions in Depth

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Creating a debt schedule

Creating a debt schedule - Microsoft Excel Tutorial

From the course: Excel: Financial Functions in Depth

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Creating a debt schedule

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- [Narrator] The kinds of on-the-job calculations you might need to do in finance often relate to debt. In a full financial model, where we need the income statement, cash flow, and balance sheet, we need a debt schedule to see how the various components of all the different loans are calculated. And this can get pretty detailed. So in a financial model, we'd normally have an entire page dedicated to calculating interest and principle, which then becomes a debt schedule that links through to the financial statements. As we discussed in chapter one, If we calculate the total loan repayment using the PMT function, this includes both interest and principle. So, in our debt schedule, we need to split the loan repayment into these two components, and show them separately using the IPMT and the PPMT functions. And it would look something like this example that we created back in chapter one. Remember that the principle amount increases over time, and the interest decreases. Now we are going…

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