Loan Amortization Template for Startup Models

Video Overview:

I specifically designed this Excel spreadsheet with a loan amortization schedule that fits a startup model. There are two tabs for two different general types of loans. The first tab is for a single loan with an interest-only (i/o) option. The second tab is for a loan that has drawn amounts over time with an option to convert to amortization at the end of the i/o period.

The inputs at the top let the user adjust the month number that the loan starts, and that slides down all logic. The benefit of that is if you want to have your startup model take on debt in different months, it can easily accommodate. The month number reference is designed to fit your model month #’s and can be offset as needed.

You can choose to have the loan recast or not if there are extra principal repayments. Recast just means the total payment will go down if a big payoff is made, and if you select not to recast the loan (common for most cases), then the total payment stays the same, but more of the principal is repaid. Recasting is only relevant if you decide to use the extra payment column in the amortization schedule. This is a manual input column.

The user can select to end the amortization at the end of the i/o period and have a balloon payment or convert to amortization. Additionally, for models that have a varying end month, the user can choose to select a month to have all debt service payments stop as well as choose to include a payoff of the loan at this end month selection or not. This flexibility makes it easier to integrate with startup models where the user wants to see projections with varying hold periods.

I originally made this amortization framework to fit in an LBO model, but it was so good that I decided it should be a standalone template just for amortization logic.

All of the logic and formula references for tabs 1 and 2 are contained in their respective tabs, making it easy to port them over to any other workbook without reference issues.

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