Repayment guide
Amortization Schedule Explained
An amortization schedule shows how each payment is split between interest and principal over the life of a loan. It helps you see how the balance declines over time.
What it tells you
- How much of each payment goes to interest.
- How much reduces the principal balance.
- How the loan balance changes month by month.
- Why early payments often go mostly to interest.
Why it matters
A schedule helps borrowers understand repayment pressure instead of guessing from the monthly payment alone.
It also makes it easier to compare loan products with different terms or fee structures.