Loan Calculator
Payments, totals and your first year amortisation at a glance.
Bars show principal vs interest for your first 12 payments. Balance is updated after each payment.
Understanding Loan Payments
Loan calculators use the amortization formula to figure out fixed payments needed to pay off a balance over time. Each payment covers interest and reduces the principal.
Amortization formula
Payment = P \times r / (1 - (1 + r)^{-n}) where P is the loan amount,r is the periodic interest rate and n is the total number of payments.
Why it matters
Understanding amortization helps you compare loans and budget effectively by showing how much interest you’ll pay over the life of the loan.
The visual bars in the calculator highlight the principal and interest mix for the first year so you can see how quickly the balance starts to fall.