Free Business Loan Repayment Excel Template 2025 with Amortization Schedule
- Dileep K Nair
- July 9, 2025
Table of Contents
Download Free Business Loan Repayment Excel Template with Amortization Schedule
Evaluating the repayment structure of a business loan is a critical step in financial planning for small businesses and individuals.
The Free Business Loan Repayment Excel Template with Amortization Schedule from Dexovise is a downloadable tool that determines your loan repayment details, including monthly payments, total interest, and an amortization schedule.
Download this business loan excel calculation template free download to analyze your financing costs with precision.
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How to Use the Business Loan Repayment Excel Template
The business loan repayment excel template is designed to help users calculate loan repayment details by entering specific financial inputs. This excel loan template and amortization schedule allows for flexible configurations to match various loan agreements.
Below are the input options required to use the tool effectively:
- Loan Amount: Enter the principal amount borrowed, representing the total funds received from the lender.
- Rate of Interest: Provide the annual interest rate, expressed as a percentage, which determines the cost of borrowing.
- Compounding Frequency: Select from annually, semi-annually, quarterly, monthly, semi-monthly, fortnightly, or weekly to reflect how interest is calculated.
- Loan Term: Specify the repayment period in months (up to 240) or years, defining the duration of the loan.
- Repayment Frequency: Choose from annually, semi-annually, quarterly, monthly, semi-monthly, fortnightly, or weekly to set the payment schedule.
- Fees: Input any applicable fees, such as origination fees, documentation fees, or other charges, to include in the total cost calculation.
To use the loan repayment template excel template, open the downloaded file, follow the clear instructions provided, and enter your data into the designated fields.
The tool will generate a detailed business loan amortization schedule, monthly payment amounts, and the effective annual percentage rate (APR), offering a comprehensive view of your repayment obligations.
Key Features of the Template
The Free Business Loan Repayment Excel Template is equipped with features tailored for small businesses and individuals in the US market. These capabilities ensure accurate loan analysis and ease of use.
The following features highlight its functionality:
- Supports loan terms up to 240 months, accommodating a wide range of repayment periods.
- Offers flexible compounding frequency options, including annually, semi-annually, quarterly, monthly, semi-monthly, fortnightly, and weekly.
- Allows repayment frequency choices, such as annually, semi-annually, quarterly, monthly, semi-monthly, fortnightly, or weekly, to match loan terms.
- Permits entry of the loan term in either months or years, providing versatility for user preferences.
- Includes fields for origination, documentation, or other fees, ensuring all financing costs are accounted for.
- Generates a chart displaying the repayment breakdown, separating principal, interest, and fees for clear visualization.
- Calculates monthly payments, total interest, total cost, and the effective APR, offering a complete financial overview.
- Produces a detailed amortization schedule excel free download, showing repayment breakdowns for up to 240 months.
- Features a dedicated year column in the amortization schedule, enabling easy tracking of yearly repayment progress.
- Designed with a user-friendly interface and clear instructions, making it accessible for small business owners and individuals.
These features make the excel loan template free download an essential tool for analyzing loan repayment structures with precision and clarity.
How the Loan Repayment Amount Is Calculated
The business loan repayment excel template determines the monthly payment amount and total financing costs by applying a standard loan amortization formula. This calculation considers the loan amount, interest rate, loan term, compounding frequency, and any applicable fees to provide a comprehensive repayment structure.
Below is the formula and an example to illustrate its application.
The formula for the monthly payment is:
Monthly Payment = [P × (r / n) × (1 + r / n)^(n × t)] ÷ [(1 + r / n)^(n × t) – 1]
Where:
- P = Loan principal (amount borrowed)
- r = Annual interest rate (as a decimal)
- n = Number of compounding periods per year
- t = Loan term in years
This formula accounts for the compounding frequency (e.g., monthly, quarterly) and calculates the fixed payment needed to repay the principal and interest over the loan term.
The excel loan template and amortization schedule also incorporates fees, such as origination or documentation fees, to compute the total cost and effective APR.
Example Calculation: Consider a small business with the following loan details:
| Category | Details |
| Loan Amount | $50,000 |
| Annual Interest Rate | 6% (0.06) |
| Loan Term | 5 years (60 months) |
| Compounding Frequency | Monthly (n = 12) |
| Repayment Frequency | Monthly |
| Origination Fee | $1,000 |
Using the formula, with P = 50,000, r = 0.06, n = 12, t = 5:
- Monthly rate = 0.06 ÷ 12 = 0.005
- Number of payments = 12 × 5 = 60
- Monthly payment = [50,000 × 0.005 × (1 + 0.005)^60] ÷ [(1 + 0.005)^60 – 1] ≈ $966.64
Total repayment over 60 months is 966.64 × 60 = $57,998.40, with interest of $57,998.40 – $50,000 = $7,998.40, plus the $1,000 fee, yielding a total cost of $58,998.40.
Business Loan Repayment Calculation using Excel Formula
The loan repayment template excel template computes this automatically, including a business loan amortization schedule to detail each payment’s principal and interest breakdown. The following excel formula uses here.
=PMT(rate, nper, pv)
- Rate : Effective Interest Rate per Repayment Period
- Nper : Total Repayment Periods
- Pv : -Gross Loan Amount or the principal amount (negative figure).
What Is an Amortization Schedule
An amortization schedule is a table that outlines each payment of a loan over its term, showing how much goes toward principal repayment and interest. It provides a clear breakdown of the repayment structure, helping users track the reduction of the loan balance over time.
The business loan amortization schedule generated by the excel loan template free download is a key feature of this tool, designed for small businesses and individuals.
In the schedule, each row represents a payment period (e.g., monthly), detailing the payment amount, interest portion, principal portion, and remaining loan balance.
For a loan term up to 240 months, the amortization schedule excel free download includes a dedicated year column to monitor yearly progress, making it easier to assess long-term repayment trends.
This schedule is essential because it enables users to understand the allocation of their payments and plan their financial obligations with precision, ensuring clarity in managing loan repayments.
What Are APR and APY
The annual percentage rate (APR) and annual percentage yield (APY) are financial metrics that help evaluate the true cost and earnings potential of a loan. The business loan repayment excel template provides the effective APR, incorporating interest and fees, to offer a complete view of borrowing costs.
Understanding these terms is vital for assessing loan agreements accurately.
- APR (Annual Percentage Rate): APR represents the annualized cost of borrowing, including the interest rate and any fees (e.g., origination or documentation fees), expressed as a percentage. For example, a $50,000 loan with a 6% interest rate and a $1,000 fee has an effective APR higher than 6%, reflecting the total financing cost.
The loan repayment template excel template calculates this automatically, aiding in loan comparisons.
- APY (Annual Percentage Yield): APY measures the annualized return on an investment or savings, accounting for compound interest. While less relevant for loan repayments, it’s included in the tool to show how interest compounds based on the selected frequency (e.g., monthly, quarterly).
This helps users understand the compounding effect on their loan’s interest calculations.
These metrics are significant because they provide a standardized way to compare loan costs and compounding effects, ensuring informed financial decisions for small businesses and individuals.
Difference Between Fixed Rate and Reducing Balance Rate of Interest
Understanding the distinction between a fixed rate and a reducing balance rate of interest is essential for evaluating loan repayment structures. These methods determine how interest is applied to the loan principal, affecting total financing costs.
The business loan repayment excel template accommodates both approaches, allowing users to analyze their impact on repayments.
- Fixed Rate of Interest: A fixed rate applies a constant interest percentage to the original loan principal throughout the loan term, regardless of principal repayments. For example, a $50,000 loan at a 6% fixed rate over 5 years incurs interest on the full $50,000 each period, leading to higher total interest costs.
This method, common in some small business loans, simplifies budgeting due to predictable payments but may result in greater overall expense.
- Reducing Balance Rate of Interest: A reducing balance rate calculates interest on the outstanding loan principal, which decreases with each payment. For the same $50,000 loan at 6%, interest is charged only on the remaining balance after each payment, reducing total interest over time.
This method, standard in most US business loans, lowers financing costs but requires a detailed amortization schedule to track changing interest amounts.
The excel loan template and amortization schedule reflects these differences by adjusting calculations based on user inputs, ensuring the business loan amortization schedule accurately shows principal and interest for either method.
This enables small businesses to compare repayment structures effectively.
Benefits of Using Our Business Loan Repayment Excel Template
The business loan repayment excel template offers significant advantages for small businesses and individuals planning their loan repayments. It provides a comprehensive analysis of financing costs and repayment obligations.
The following sentences outline the benefits of using this tool:
- It calculates monthly payments, total interest, and effective APR, providing a clear overview of the loan’s financial impact.
- The detailed amortization schedule excel free download tracks principal and interest for up to 240 months, aiding in long-term planning.
- Flexible input options for compounding and repayment frequencies ensure the tool aligns with various loan agreements.
- A visual chart separates principal, interest, and fees, making the repayment structure evident for better understanding.
- The user-friendly interface with clear instructions simplifies the process of analyzing complex loan repayment details.
These benefits make the excel loan template free download an essential resource for managing business loan repayments with precision.
Why Plan Your Loan Repayment with Our Tool
Planning loan repayments is a critical aspect of financial management for small businesses and individuals. The loan repayment template excel template supports this process by offering detailed insights into repayment obligations.
The following sentences explain why using this tool is advantageous for planning:
- It helps determine affordable loan terms by showing monthly payments and total costs for different loan amounts and rates.
- The business loan amortization schedule enables tracking of yearly progress, supporting budgeting for future financial commitments.
- Calculating the effective APR, including fees, allows comparison of loan offers to select the most cost-efficient option.
- Adjusting inputs like repayment frequency or fees reveals how changes affect the repayment structure, aiding in strategic decisions.
- The downloadable format ensures access to repayment details offline, providing flexibility for ongoing financial planning.
This tool is valuable because it equips users with the information needed to structure loan repayments in a financially sound manner.
Let’s Move On
Analyzing your loan repayment structure with the business loan repayment excel template is a practical way to manage financing costs effectively.
Download this business loan excel template free download and explore additional tools at Dexovise to support your business’s financial stability and growth.
