Free Prepaid Expense Amortization Schedule (Excel)
What's in the prepaid amortization schedule
The template is a single table with one row per prepaid item - an insurance premium, a software subscription, a service contract - anything you paid for upfront that covers future months.
Each row captures a vendor or description, the total amount prepaid, how many months the payment covers, and how many months have elapsed since the coverage started.
That's the whole input: four fields per item, and the amortization math runs off those numbers.
How the calculation works, row by row
From the total amount and coverage months, the sheet divides to get a straight-line monthly expense for that item. Multiplying that by months elapsed (capped at the total, so a fully elapsed item never over-expenses) gives the amount expensed to date, and subtracting from the total gives the remaining balance.
This is a per-line calculation, not a month-by-month grid across columns - there's no separate column for January, February, March and so on. You update the Months Elapsed number for each item as time passes, and the expensed-to-date and remaining balance recalculate from that single input.
That keeps the sheet simple to maintain: one number to update per item each month, rather than filling in a new column for every period.
Tying out your prepaid balance at month-end
The summary adds up the total prepaid across every item, the total expensed to date, and the combined remaining balance - the figure that should tie to your prepaid expenses account on the balance sheet.
Because each item amortizes independently, you can add a new prepaid item that started mid-year without disturbing the totals for items you're already tracking.
Why this beats a blank spreadsheet
Building straight-line amortization formulas from scratch for every prepaid item, then re-checking the math every month, is easy to get wrong - especially the cap that stops an item from expensing past its total.
This template already has that formula in place. You enter the total, the coverage months, and update months elapsed - the monthly expense, expensed-to-date, and remaining balance are guaranteed to be right.
How to use it
- Add one row per prepaid item: vendor or description, total amount prepaid, and coverage in months.
- Enter months elapsed for each item - monthly expense, amount expensed to date, and remaining balance calculate automatically.
- Update months elapsed each period as time passes; the totals recalculate from that single number.
- Check the combined remaining balance in the summary against your balance sheet prepaid account.
Download the free Free Prepaid Expense Amortization Schedule (Excel)
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Small Business Bookkeeping & Tax Dashboard
If you need this tied into your full books, the Bookkeeping & Tax Dashboard ($19) adds Schedule C categories, a monthly P&L, and a quarterly tax set-aside calculated from your real net profit.
See the full versionFrequently asked questions
Can I use this prepaid amortization schedule in Google Sheets?
Yes. Upload the downloaded file to Google Drive, then open it and choose File > Save as Google Sheets. All the formulas keep working.
Does it show a month-by-month grid with a column for each month?
No. Each item amortizes off a single Months Elapsed number you update per row, not a separate column per calendar month.
Is this template really free?
Yes. You give an email address to download it, and then it's yours to use with no further cost.
How is this different from a fixed-asset depreciation schedule?
Depreciation schedules amortize the cost of owned assets over years. This tracks short-term prepaid payments - like insurance or subscriptions - expensed straight-line, usually over 12 months or less.
Can I add a new prepaid item that started partway through the year?
Yes. Add it as a new row with its own total and coverage months - it amortizes independently and doesn't affect the totals for items already on the sheet.