Loan amortization is the process of scheduling out a fixed-rate loan into equal payments. A portion of each installment covers interest and the remaining portion goes toward the loan principal.

Open Microsoft Excel. Enter the loan's interest rate as a percentage in cell A1 and press "Enter." For example, if the loan had a 7.5 percent interest rate, you would enter "7.5%." ...

Interest rates are generally given as an annual percentage rate (APR) regardless of the actual period of interest accrual on the loan. For more accurate tracking of the loan, the periodic interest ...

For example, let's take a $100 loan which carries a 10% compounded interest. After one year, you have $100 in principal and $10 in interest, for a total base of $110.