Finance Calculator
Loan Repayment Calculator
Calculate monthly loan repayments and view a full amortisation schedule showing the principal and interest breakdown for every payment period.
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What is an amortisation schedule?
An amortisation schedule is a complete table of periodic loan payments, showing the amount of principal and interest that comprise each payment until the loan is paid off at the end of its term.
In the early stages of the loan, a larger proportion of each payment goes towards interest. As the outstanding balance reduces over time, more of each payment is applied to the principal. This pattern means total interest cost is front-loaded.
Understanding how your repayments are structured helps you evaluate whether early repayment, overpayments, or refinancing might reduce total costs.
Where P = principal, r = monthly interest rate, and n = total number of monthly payments.
Assumptions and caveats
- •Fixed interest rate assumed for the full term.
- •Monthly repayments only (12 payments per year).
- •No fees, charges, or early repayment costs included.
- •Fully amortising - no balloon payment or interest-only period.
- •Results are indicative. Contact a lender for formal quotations.
Worked Example
Scenario
A catering company borrows GBP 30,000 over 2 years at 7.5% annual interest, repaid monthly.
Calculation
- Monthly Rate = 7.5% / 12 = 0.625%
- Number of Payments = 24
- Monthly Repayment = GBP 1,350
- Total Repaid = 1,350 x 24 = GBP 32,400
What This Means
The business repays GBP 1,350 per month for 24 months, with total interest of GBP 2,400 over the term. In the early months, a larger proportion of each payment goes toward interest. By month 12, the split shifts toward principal repayment. Understanding this amortisation profile helps businesses plan cash flow and decide whether early repayment (if permitted) would save meaningful interest.
Frequently asked questions
An amortisation schedule is a table showing each periodic payment on a loan broken down into the amount applied to principal and the amount applied to interest. It also shows the remaining balance after each payment.
With each payment, a portion of the principal is repaid. Since interest is calculated on the outstanding balance, the interest component decreases over time while the principal component increases.
The business loan calculator provides a summary of repayments and total costs. This loan repayment calculator additionally generates a full amortisation schedule showing the principal and interest split for every payment period.
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