Starting to look for a new car or a new house? There are a lot of calculators online that can show you how much financing you can afford if you know the length of the loan and the loan amount. Unfortunately, most calculators only show you one value. If you have any uncertainty about the amount of the interest rate or the interest rate is variable, you will have to enter different scenarios in manually over and over in order to be able to see a broader picture of the potential monthly payments you could be making over time. By using the Loan Analysis Worksheet, you can simply enter the number of years that the loan will last for and then the loan amount.
The worksheet will then automatically display how much the monthly payment will be over time when the interest rate range is between 4% and 18%. Downloadable from this page, the loan analysis worksheet is easily customized
How to Use the Loan Analysis Worksheet Template for Excel
- First of all, determine how many years that you will likely have the loan and the total loan amount. Enter those numbers into the calculator part of the worksheet.
- View the various term combinations or lengths of time for payback that surround the actual amount of time that you selected. Each monthly payment amount will be listed in this fashion by column with different amounts of payment depending upon the interest rate as you scroll down.
Tips for Using the Loan Analysis Worksheet Template for Excel
- If you are looking for a car, you might consider also trying to figure out the total cost of owning a car. You can enter the same two numbers that you normally would, but in the loan amount area, you could add the amount that you need for a car plus the total estimated cost of insurance for the period that you are looking at, plus the costs of gasoline and maintenance.
- If you are looking for a house, consider expanding the template to cover the total cost of having a house by adding in the total insurance and maintenance costs to the loan amount field before it auto-generates your possible payment amounts.
Download: Loan Analysis Worksheet