Loan amortisation schedule
Enter a loan, a rate per period and a term. The schedule shows where every payment goes, and the period where principal first passes interest.
The rate is the rate per period, and the term is a number of periods. For a loan at 6% a year paid monthly, that is 0.5% over 360 periods, not 6% over 30.
Your loan
Every figure below updates as you type.
Six per cent a year paid monthly is 0.5 per cent a period. Divide the annual rate by the number of payments in a year.
Pay more and the loan clears early. Pay less and it runs past your term, or never clears at all. The schedule follows whichever happens.
Each example is a real shape this tool has to handle, including a loan with no interest and a payment that never clears the balance.
Payment = L / [ (1 - (1 + r)^-n) / r ]The bracket is the present value of an ordinary annuity of 1, which is 166.7916 here. It is the same factor the present value tables print, and their calculator handles the rates and terms that are off the printed grid, as 0.5% over 360 periods is.
You repay $1,079,193 on a $500,000 loan, so the interest adds 115.8% to what you borrowed. The split moves every period, which is what the schedule shows.
The schedule
Where every payment goes. Interest is charged on the opening balance, and whatever is left of the payment comes off the loan.
$500,000 at 0.5% a period over 360 periods, paid at the end of each period. Payment $2,997.75.
| Period | Opening balance | Payment | Interest | Principal | Closing balance |
|---|---|---|---|---|---|
| 1 | $500,000.00 | $2,997.75 | $2,500.00 | $497.75 | $499,502.25 |
| 2 | $499,502.25 | $2,997.75 | $2,497.51 | $500.24 | $499,002.01 |
| 3 | $499,002.01 | $2,997.75 | $2,495.01 | $502.74 | $498,499.27 |
| 4 | $498,499.27 | $2,997.75 | $2,492.50 | $505.25 | $497,994.02 |
| 5 | $497,994.02 | $2,997.75 | $2,489.97 | $507.78 | $497,486.24 |
| 6 | $497,486.24 | $2,997.75 | $2,487.43 | $510.32 | $496,975.92 |
| 7 | $496,975.92 | $2,997.75 | $2,484.88 | $512.87 | $496,463.05 |
| 8 | $496,463.05 | $2,997.75 | $2,482.32 | $515.43 | $495,947.62 |
| 9 | $495,947.62 | $2,997.75 | $2,479.74 | $518.01 | $495,429.61 |
| 10 | $495,429.61 | $2,997.75 | $2,477.15 | $520.60 | $494,909.01 |
| 11 | $494,909.01 | $2,997.75 | $2,474.55 | $523.20 | $494,385.81 |
| 12 | $494,385.81 | $2,997.75 | $2,471.93 | $525.82 | $493,859.99 |
| 210 periods not shown, 13 to 222 | |||||
| 223crossover | $298,313.96 | $2,997.75 | $1,491.57 | $1,506.18 | $296,807.78 |
| 136 periods not shown, 224 to 359 | |||||
| 360last | $2,985.51 | $3,000.44 | $14.93 | $2,985.51 | $0.00 |
Principal first passes interest in period 223, which is 61.9% of the way through. That payment is $1,506.18 principal against $1,491.57 interest.
360 periods, each rounded to the cent. The last payment is $3,000.44, which clears the balance exactly.
This is an extract. It shows the first 12 periods of the worked example, the crossover period, and the last one. The full schedule runs to 360 periods, and every one of them appears here once the calculator above is running.
Notes on reading this
Interest is charged on what you still owe, so it falls a little every period while the payment stays the same. That is the whole reason the split moves.
The last payment is not the same as the others. Payments are rounded to the cent, and the rounding has to land somewhere, so the final one is adjusted to clear the balance exactly.
The payment comes from the annuity factor. Divide the loan by the present value of an ordinary annuity for your rate and term, which is the number in the present value tables.