First-year amortisation breakdown
| Month | Payment | Interest | Principal | Balance |
|---|
General information tools only — not tax or financial advice. Rates and rules vary by country and change over time; confirm important figures with a qualified accountant.
How to use the loan payment calculator
How loan payments are worked out
Each month you are charged interest on the balance still owed, and the rest of your fixed payment reduces the balance. Early payments are mostly interest; later payments are mostly principal — the first-year table above shows that shift clearly.
Before you sign
Lenders may add arrangement fees, insurance, or early-repayment charges that this calculator does not include. Compare the total repaid figure here against the total on any agreement, and ask about fees that sit outside the interest rate.
Example
12,000 at 12% over 12 months: the monthly payment is 1,066.19, total interest is 794.23, and you repay 12,794.23 in total. Month 1 splits into 120.00 interest and 946.19 principal — see the table.
Frequently asked questions
Why is so much of my first payment interest?
Interest is charged on the full starting balance, which is at its highest in month one. As the balance falls, the interest share shrinks and more of each payment clears the loan itself.
Does this work for a mortgage?
Yes. Enter the amount, the annual rate, and the term in months (25 years = 300 months). It assumes a standard repayment (capital-and-interest) mortgage.
What if the rate is 0%?
The payment is simply the loan amount divided by the number of months, with zero interest.
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