Repayment Calculator
Calculate your loan repayment schedule and see how payments are split between principal and interest.
How are loan repayments calculated?
Repayments are calculated using the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], which ensures equal monthly payments covering both principal and interest over the loan term. Early payments are mostly interest, while later payments are mostly principal.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest, and how the loan balance decreases over time. It helps you see exactly where your money goes each month and how much equity you're building.
Can I pay off my loan early?
Most loans allow early payoff, which can save significant interest. Check your loan terms for any prepayment penalties. Making extra principal payments or paying biweekly instead of monthly can substantially reduce your loan term and total interest paid.
Why does interest decrease over time?
Interest decreases over time because it's calculated on the remaining balance. As you pay down the principal, the balance decreases, so less interest accrues each month. This is why more of each payment goes toward principal as the loan progresses.