How it is calculated
The fixed payment: M = P × r(1+r)^n ÷ ((1+r)^n − 1)
Then each month: interest = balance × r, principal = M − interest, new balance = balance − principal. Early payments are mostly interest, decreasing over time.
Worked example
A 100,000 loan at 6% over 3 years: payment ≈ 3,042.19. Month one: interest = 100,000 × 0.5% = 500, principal = 2,542.19, balance = 97,457.81.
Frequently asked questions
Why does my balance fall slowly at first?
Interest is charged on the large early balance, so most of each early payment goes to interest.
Can I download the schedule?
Yes — the “Download CSV” button saves it for Excel or Google Sheets.
What if I pay extra?
Use the early payoff calculator to see the months and interest you would save.