Microsoft Excel can help you manage your finances. Use Excel formulas to calculate interest on loans, savings plans, down payments, and more.Amortization is an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time. PMT (Payment Function): It calculates the fixed monthly payment for a loan based on the interest rate, loan term, and loan amount. What is an Amortization Schedule? This is the first of a two-part tutorial on amortization schedules. This short video shows how to easily create a simple amortization table in Excel.