Loan amortization calculator and payment schedule
An amortization schedule shows how each payment is split between interest and the amount you borrowed. For a £10,000 loan over 3 years at 9.9% the payment is £320.22 a month; in month 1, £78.98 of it is interest.
Advertisement
First 12 payments of a £10,000 loan at 9.9%
Interest is charged each month on the balance still owed, so early payments are mostly interest and the balance falls slowly at first. Each month the interest part shrinks and the part that repays the loan grows.
£10,000 at 9.9% over 3 years
| Payment | Amount | Interest | Repays the loan | Balance left |
|---|---|---|---|---|
| 1 | £320.22 | £78.98 | £241.25 | £9,758.75 |
| 2 | £320.22 | £77.07 | £243.15 | £9,515.60 |
| 3 | £320.22 | £75.15 | £245.07 | £9,270.53 |
| 4 | £320.22 | £73.22 | £247.01 | £9,023.52 |
| 5 | £320.22 | £71.27 | £248.96 | £8,774.57 |
| 6 | £320.22 | £69.30 | £250.92 | £8,523.64 |
| 7 | £320.22 | £67.32 | £252.91 | £8,270.74 |
| 8 | £320.22 | £65.32 | £254.90 | £8,015.83 |
| 9 | £320.22 | £63.31 | £256.92 | £7,758.92 |
| 10 | £320.22 | £61.28 | £258.95 | £7,499.97 |
| 11 | £320.22 | £59.23 | £260.99 | £7,238.98 |
| 12 | £320.22 | £57.17 | £263.05 | £6,975.93 |
Fixed rate, equal payments, no fees.
How the schedule is calculated
- Monthly interest = balance × monthly rate.
- Repayment of the loan = payment − interest.
- New balance = old balance − repayment of the loan.
- Over 36 months the total paid is £11,528, of which £1,528 is interest.
Advertisement
Why overpaying early saves the most
Because early payments are mostly interest, an extra payment in the first year cuts the balance that interest is charged on for the rest of the term. The same extra payment late in the loan saves much less.
Sources and further reading
Questions people ask
What is an amortization schedule?
A table that shows every loan payment and how much of it is interest and how much repays the amount borrowed, with the balance left after each payment.
How do I calculate monthly loan payments?
Payment = amount × monthly rate ÷ (1 − (1 + monthly rate)^−months). The calculator on this page also shows the yearly balance.
Results are estimates for information only, not financial advice. Read the full disclaimer.
More free calculators
⏱️Short-Term LoansSmall loans over 3 to 12 months💳Credit Card RepaymentsTime and interest to clear a card🏦Savings and ISAsSavings growth, interest and ISA rules🧓PensionsTax relief, pot size and how much you need🧾Tax CodesWhat 1257L, BR, 0T and K codes mean⚡Energy and Running CostsAppliances, EV charging and heat pumps
Advertisement