November 4, 2018

Automate Loan Amortization Schedule

How to automate the loan amortization schedule using VBA. Automating monthly payments is useful in many financial situations for people and companies. We first describe the manual process and then show the step by step connection with the macro code. The VBA code to automate the loan amortization schedule is now easy to understand and implement. Watch the video:

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Here’s the complete VBA code to automate equal period payments based on a fixed rate of interest:

Sub Loan_Amortization()

‘Worksheets(“loanAmortization”).Activate

Rows(7 & “:” & 200).Clear

Dim lastRow As Long, rowNum As Long
lastRow = Sheets(“loanAmortization”).Cells.Find(What:=”*”, _
After:=Range(“A1”), _
LookAt:=xlPart, _
LookIn:=xlFormulas, _
SearchOrder:=xlByRows, _
SearchDirection:=xlPrevious, _
MatchCase:=False).Row
‘MsgBox lastRow

nextblankrow = lastRow + 1

Cells(nextblankrow, 1) = “Month”
Cells(nextblankrow, 2) = “Balance Beginning of Loan Period”
Cells(nextblankrow, 3) = “Monthly payment”
Cells(nextblankrow, 4) = “Interest Component of Monthly Payment”
Cells(nextblankrow, 5) = “Principal Component of Monthly Payment”
Cells(nextblankrow, 6) = “Month End Balance”

Columns.AutoFit

Dim intRate, initialLoanAmount, loanPeriod
Dim monthBeginBalance, monthEndBalance
Dim monthlyPayment, interestComponent, principalRepaid

intRate = Range(“B2”)
loanPeriod = Range(“B3”)
initialLoanAmount = Range(“B4”)
‘ Make sure interest rate is not greater than 12%
If intRate > 0.12 Then
MsgBox “Interest rate cannot be greater than 12%.”
Exit Sub
End If

monthlyPayment = Pmt(intRate / 12, loanPeriod, -initialLoanAmount, 0, 0)
monthBeginBalance = initialLoanAmount

For rowNum = 1 To loanPeriod
interestComponent = monthBeginBalance * (intRate / 12)
principalRepaid = monthlyPayment – interestComponent
monthEndBalance = monthBeginBalance – principalRepaid
Cells(nextblankrow + rowNum, 1) = rowNum ‘month number
Cells(nextblankrow + rowNum, 2) = monthBeginBalance
Cells(nextblankrow + rowNum, 3) = monthlyPayment
Cells(nextblankrow + rowNum, 4) = interestComponent
Cells(nextblankrow + rowNum, 5) = principalRepaid
Cells(nextblankrow + rowNum, 6) = monthEndBalance
monthBeginBalance = monthEndBalance
Next rowNum

Range(Cells(8, 2), Cells(nextblankrow + loanPeriod, 6)).NumberFormat = “$#,##0”

End Sub

Sample for download and practice: