Amortisation Schedule
See where each payment actually goes. A year-by-year breakdown of interest, principal and the balance left on your loan.
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How it works
Each instalment is split between interest — charged on whatever balance remains — and principal, which is the rest. Because the balance falls a little every month, the interest share falls with it and the principal share rises. The payment stays the same throughout.
The effect is heavily front-loaded. On a typical 30-year loan you will still owe about 84% of the original amount after ten years of paying, which is why the schedule surprises people who have only ever seen the monthly figure.
Interest(m) = balance(m−1) × r · Principal(m) = EMI − interest(m)
- r — the monthly interest rate (annual rate ÷ 12 ÷ 100)
- Balance — what remains owing after each payment is applied
- Payoff — the month the balance first reaches zero
Worked example
250,000 at 6% over 25 years
Inputs
Results
In the first year, 77% of everything you pay is interest. The crossover — where principal finally exceeds interest — does not arrive until month 163, most of the way through year 14.
Frequently asked questions
Why is so little of my early payment going to the loan?
Interest is charged on the balance outstanding, which is at its highest right at the start. As the balance falls the interest portion shrinks and the principal portion grows, but the shift is slow in the first third of the term.
When does principal overtake interest?
It depends on the rate and term. At typical rates on a 25 to 30 year loan it happens somewhere around the halfway point. The yearly table below shows exactly where the crossover falls for your figures.
Can I see the effect of overpaying?
Use the prepayment calculator for that — it models a lump sum or a monthly extra and reports the interest saved and months removed.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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