Time Value of Money Spreadsheet

Calculating Time Value of Money

Have you every wondered how your EMI (Equated Monthly Installment) is calculated when you apply for a housing loan? The Handspring line of Palm PDAs (including Treo 600/650) have an enhanced calculator which provides an excellent application for calculating "Time Value of Money". The Handspring calculator application even presents a nice Amortization schedule (which gives the principal and interest portions of each EMI payment). I looked at many calculator applications for Linux and Windows and never came across a single application which was so convenient to use.

Time Value of Money Spreadsheet

I did find several spreadsheets that give you an Amortization schedule (many of them available as Microsoft Templates) but they still don't give the flexibility of this simple app. So I wrote one of my own. I wrote it in Gnumeric but the spreadsheet is available here in Excel format for wider use.

Usage

You need to fill the columns in the blue background. The spreadsheet computes the columns in yellow and creates an amortization table on the right. The spreadsheet is useful not just for loans but for any kind of periodic payments, for example, a recurring deposit in a bank. Here are the explanations of the columns you need to fill.