Loan Calculator
Calculate your loan payments and see the full amortization schedule
Loan Details
6 24 48 72 96 120
60 months
1% 10% 20% 30%
7.5%
Loan Summary
Monthly Payment
£501.39
Total Interest
£5,083.60
Total Cost
£30,083.60
Payment Breakdown
Interest vs Principal Over Time
Amortization Schedule
| Payment # | Payment | Principal | Interest | Balance |
|---|
Enter your loan details and click “Calculate” to see results
About Loan Amortization
An amortization schedule shows how each loan payment is split between principal and interest over the life of your loan.
How Loan Payments Work:
- Early payments are mostly interest, with little principal reduction
- Over time, more of each payment goes toward principal
- The last payments are almost entirely principal
- Fixed payments mean the amount stays the same, but the composition changes
Key Terms:
- Principal: The original loan amount you borrowed
- Interest: The cost of borrowing the money
- Amortization Period: The time it takes to pay off the entire loan
- Fixed Rate: Interest rate stays the same for the loan term
- Variable Rate: Interest rate may change during the loan term
How Payments Are Calculated:
M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1] - M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in months)