Loan Amortisation Schedule
Full payment-by-payment breakdown of principal, interest and remaining balance, with optional overpayments.
Formula
M = P · [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Tips
- Early payments are mostly interest because interest is charged on the outstanding balance, which is highest at the start.
- An overpayment goes entirely to principal, so it removes all the future interest that principal would have accrued. Small, early overpayments do the most work.
- Check for early repayment charges before overpaying. Many fixed-rate deals cap annual overpayments at 10%.
Frequently asked questions
Should I shorten the term or reduce the payment?
Shortening the term saves far more interest, because the balance falls faster. Reducing the payment improves monthly cash flow instead. Which is right depends on whether your constraint is total cost or monthly affordability.