Hi, I have the loan amortization schedule loaded & am using it to amortise
equipment (so it may be the wrong template to use???). I need to enter in a
balloon payment for the final payment but it's not calculating how I want it
to, can anyone give some advice on setting up a balloon payment using this
schedule? Thanks a mil.
Fran.

On Jan 21, 12:22*am, Fran wrote:
Hi, I have the loan amortization schedule loaded & am using it
to amortise equipment (so it may be the wrong template to
use???). I need to enter in a balloon payment for the final payment
but it's not calculating how I want it to, can anyone give some
advice on setting up a balloon payment using this schedule?

I would like to. But first, you say "the loan amortization"
schedule. There are several. Could you be more specific?

Second, you say that you are using it to "amortize equipment". Do you
mean depreciate equipment? If so, by "baloon payment", do you really
mean its salvage or residual value?

Normally, the value of capital assets do not depreciate on the same
kind of schedule as a loan. So yes, if you are interested in
depreciation, a loan amortization schedule is probably not the right
thing to use. A noted exception: the depreciation of intangible
assets sometimes follow an amortization schedule.

Hi, yeah sorry, I should have been more specific. The template is for version
excel 2007. You type in the loan amount, interest rate, loan period, no. of
payments, start date of loan and any extra payments and it calculates your
scheduled payment, the number, and the total interest amount. The spreadsheet
will breakdown the principal payment and the interest amount on a monthly
basis over the period of the loan.

A depreciation schedule is not what I am after as I need the principal
payment and interest component breakdown (to expense the interest component
annually). The balloon payment is the residual and the amount that is due to
pay off the loan on the final payment.

Thanks for your help, I really appreciate it. ;o)

"joeu2004" wrote:

On Jan 21, 12:22 am, Fran wrote:
Hi, I have the loan amortization schedule loaded & am using it
to amortise equipment (so it may be the wrong template to
use???). I need to enter in a balloon payment for the final payment
but it's not calculating how I want it to, can anyone give some
advice on setting up a balloon payment using this schedule?

I would like to. But first, you say "the loan amortization"
schedule. There are several. Could you be more specific?

Second, you say that you are using it to "amortize equipment". Do you
mean depreciate equipment? If so, by "baloon payment", do you really
mean its salvage or residual value?

Normally, the value of capital assets do not depreciate on the same
kind of schedule as a loan. So yes, if you are interested in
depreciation, a loan amortization schedule is probably not the right
thing to use. A noted exception: the depreciation of intangible
assets sometimes follow an amortization schedule.

Hi, I did respond yesterday however my response seems to have not loaded. The
schedule is the 2007 one, whereby you give the loan amount, annual interest
rate, loan period, # of payments/yr, start date and optional extra payments.
This info calcs the repayments, the number, total interest and gives you a
breakdown of the principal and interest components.

I mean to find the principal and interest components of the loan annually -
not depreciate the equipment. It has a residual at the end of the period. ie
the loan is 100K, over a period of 5 years and the residual due on the last
payment (payment number 60) is 20K.

I hope that clarifies what I am trying to achieve. Many thanks.

"joeu2004" wrote:

On Jan 21, 12:22 am, Fran wrote:
Hi, I have the loan amortization schedule loaded & am using it
to amortise equipment (so it may be the wrong template to
use???). I need to enter in a balloon payment for the final payment
but it's not calculating how I want it to, can anyone give some
advice on setting up a balloon payment using this schedule?

I would like to. But first, you say "the loan amortization"
schedule. There are several. Could you be more specific?

Second, you say that you are using it to "amortize equipment". Do you
mean depreciate equipment? If so, by "baloon payment", do you really
mean its salvage or residual value?

Normally, the value of capital assets do not depreciate on the same
kind of schedule as a loan. So yes, if you are interested in
depreciation, a loan amortization schedule is probably not the right
thing to use. A noted exception: the depreciation of intangible
assets sometimes follow an amortization schedule.

On Jan 22, 4:17 pm, Fran wrote:
The template is for version excel 2007.

I actually needed the URL ("http://...") or, if it is an MS Office
Online template, the name of the template that you selected.

You type in the loan amount, interest rate, loan period, no. of
payments, start date of loan and any extra payments and it
calculates your scheduled payment, the number, and the total
interest amount.

The devil is in the details. Most templates compute the payment so
that it reduces the loan to zero in the stated loan period at the
stated interest rate. In order to allow for a balloon payment, a
properly-designed template would allow you specify that amount, too.

Looking at the MS Office Online template "Mortgage amortization
schedule" (by TemplateZone by KMT Software), I do not see that
feature.

(I am using that template as an example. I don't think you are using
it because you mention a feature that it does not have.)

In theory, it could be added fairly easily. Insert a line under the
end of the "Inputs" table for the balloon payment, if any, and change
the formula for "Monthly payments" by adding the following for the
"fv" argument: IF(ISNUMBER(E9),E9,0).

(That is probably applicable to the template that you are using, too,
changing E9, of course.)

But ironically, that also demonstrates how non-straight-forward such a
change can be -- that is, "the devil is in the details".

As it happens, that change alone does not work. For that template,
the problem is that the annual "Ending Balance" is computed with a non-
intuitive formula (IMHO): PV() of the ending loan balance (presumed
to be zero) instead of FV() of the previous ending balance.

I could tell you how to fix the template that I mentioned. But there
is little point to that, since it probably would not be applicable to
the template you are using (hopefully <g).

Anyway, this is probably not directly useful. But I hope it gives you
some appreciation for the care with which you need to proceed with any
suggestions.

Hi, sorry new to this forum stuff. I downloaded the schedule from microsoft
online
http://office.microsoft.com/en-au/te...CT101172751033

I will give what you have mentioned in your last post a go although can't
say I am that savvy with the advanced side of formula's. Thanks for your
help.

"Fran" wrote:

Hi, I did respond yesterday however my response seems to have not loaded. The
schedule is the 2007 one, whereby you give the loan amount, annual interest
rate, loan period, # of payments/yr, start date and optional extra payments.
This info calcs the repayments, the number, total interest and gives you a
breakdown of the principal and interest components.

I mean to find the principal and interest components of the loan annually -
not depreciate the equipment. It has a residual at the end of the period. ie
the loan is 100K, over a period of 5 years and the residual due on the last
payment (payment number 60) is 20K.

I hope that clarifies what I am trying to achieve. Many thanks.

"joeu2004" wrote:

On Jan 21, 12:22 am, Fran wrote:
Hi, I have the loan amortization schedule loaded & am using it
to amortise equipment (so it may be the wrong template to
use???). I need to enter in a balloon payment for the final payment
but it's not calculating how I want it to, can anyone give some
advice on setting up a balloon payment using this schedule?

I would like to. But first, you say "the loan amortization"
schedule. There are several. Could you be more specific?

Second, you say that you are using it to "amortize equipment". Do you
mean depreciate equipment? If so, by "baloon payment", do you really
mean its salvage or residual value?

Normally, the value of capital assets do not depreciate on the same
kind of schedule as a loan. So yes, if you are interested in
depreciation, a loan amortization schedule is probably not the right
thing to use. A noted exception: the depreciation of intangible
assets sometimes follow an amortization schedule.

On Jan 22, 8:44*pm, Fran wrote:
I downloaded the schedule from microsoft
onlinehttp://office.microsoft.com/en-au/templates/TC100738811033.aspx?Categ...

I will give what you have mentioned in your last post a go although can't
say I am that savvy with the advanced side of formula's. Thanks for your
help.

I would like to take a look at this template myself. Unfortunately,
it claims to be saved as an Excel 2007 file, and I do not have Excel
2007.

If you could save it in Excel 2003 format and email it to me, I would
appreciate it. Send it to joeu2004 "at" hotmail.com .