Loan Amortisation

How Loan Amortisation works

See interest, principal and remaining balance for each month. Enter amount, rate and term to get the monthly payment plus the first year of the schedule. Everything happens inside this page: the tool reads your input, runs the calculation or conversion locally, and hands the result back to you. Nothing is transmitted, because there is no backend to transmit it to.

That design choice is deliberate. Most free tool sites upload your files to a server, process them there, and quietly keep a copy. Toolcin cannot do that — the site is a set of static files. If your connection dropped the moment the page finished loading, every tool would still work.

The month-by-month split

For each month the tool computes interest on the outstanding balance, subtracts it from the payment to find the principal repaid, and carries the remainder forward. The first twelve months and the final month are shown.

On a 2,000,000 loan at 12% over ten years, the payment is 28,694.19. Month one is 20,000 interest and 8,694.19 principal; by month twelve the interest has dropped to 18,994 and the principal has risen to 9,699.

Why the early months feel pointless

Interest is charged on the balance, and the balance is at its largest at the start. More than two-thirds of the first payment goes to interest, which is why a loan appears not to shrink for the first year.

That is also why an extra payment early saves far more than the same amount paid later: it removes interest from every subsequent month.

What it excludes

Processing fees, insurance, taxes and any rate change on a variable loan. The arithmetic matches a lender's schedule to the cent only if those are zero — which is why the schedule is worth comparing against the lender's own table.

Good to know

• Works offline once loaded, including on flights and in locked-down networks.
• No file size limit beyond your device's own memory.
• Free to use, with no account and no usage counter.
• Results are produced locally, so they are not logged or shared with anyone.

Questions

How this number is produced

The calculation is interest charged on the outstanding balance each month, then the fixed payment subtracted, following the standard reducing-balance schedule. The formula is repeated here so the result can be checked by hand rather than taken on trust.

This is a calculator, not advice. No clinician, accountant or adviser has reviewed it, and it cannot see your circumstances. For anything involving health, a loan, a tax filing or a religious obligation, confirm the figure with a qualified professional or the authority that publishes the rule.