Bureau of Wealth

Amortisation Schedule Calculator

By the Bureau of Wealth team Updated

This calculator is general information, not financial advice. Check your own figures with the provider or a qualified adviser before acting on them.

Enter the amount borrowed, the interest rate, the term and the month of your first repayment to see how each payment splits between capital and interest, and what you still owe.

Check the highlighted fields to see your results.

What this calculator assumes

  • The loan is a repayment loan or repayment mortgage, where every monthly payment covers the interest and some of the capital. Interest-only mortgages work differently.
  • The interest rate stays the same for the whole term. A fixed rate usually lasts only part of the term, so the schedule is only exact for that period unless you rerun it at each new rate.
  • Interest is charged monthly at the annual rate divided by 12. If your lender works out interest another way, its figures will differ slightly.
  • Every repayment is the same and made on time. Overpayments, payment holidays, arrangement fees and early repayment charges are not included.
  • Figures are rounded to the penny for display, and the final repayment absorbs any rounding so the balance ends at exactly zero.

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What an amortisation schedule shows

Amortisation is the way a loan is paid off by regular repayments until nothing is left. MoneyHelper explains that with a repayment mortgage you pay off the interest and some of the capital each month, so the mortgage is cleared by the end of the term. The monthly repayment stays the same, but the split changes. At the start, most of it is interest, because interest is charged on a large balance. As the balance falls, the interest shrinks and more of each repayment clears capital.

The calculator first finds the level monthly repayment that clears the loan exactly by the end of the term, using the standard repayment formula. It then works through every month: interest is the balance multiplied by the monthly rate, the capital repaid is the repayment minus that interest, and the new balance is what remains. Each row is dated from the first repayment month you choose, and the yearly table adds up the rows in each calendar year.

A worked example

Take a £200,000 repayment mortgage at 4.5% over 25 years. The monthly repayment is £1,111.66. In the first month £750.00 is interest and only £361.66 reduces the balance. Repayment 116, nearly ten years in, is the first where more goes to capital than to interest, and the balance does not fall below half the original loan until repayment 191. Across all 300 repayments you pay £333,499.49, of which £133,499.49 is interest.

You can check the repayment in a spreadsheet with =PMT(4.5%/12, 300, -200000), which returns 1111.66.

How the term changes the schedule

The same £200,000 at 4.5% over 20 years costs £1,265.30 a month, about £154 more. More of each repayment goes to capital from the start, and total interest falls to £103,671.70, saving almost £30,000. Longer terms make the monthly figure easier to manage but keep you paying interest for longer.

Using the schedule with a real mortgage

The balance column shows roughly what you will owe when your fixed rate ends, which is the amount you would remortgage. Enter your current rate and remaining term, then read the balance at the month your deal expires. Your lender's redemption statement gives the exact figure.

Overpaying is the quickest way to change the schedule, because every pound off the balance stops interest building on it. MoneyHelper says many lenders let you overpay up to 10% of the balance each year without a penalty, but not all mortgages allow it, so check your terms for early repayment charges first.

For a personal or car loan, the loan repayment calculator shows how overpayments shorten the schedule and how much interest they save.

Frequently asked questions

Why does so little of my early repayment go off the mortgage?

Interest is charged on what you still owe, and at the start that is the whole loan. As the balance comes down, the interest part of each repayment shrinks and the capital part grows, even though the repayment stays the same.

Does this work for an interest-only mortgage?

No. With interest-only, your monthly payment covers just the interest and the full capital is still owed at the end of the term. This calculator assumes every repayment clears some capital.

What happens to the schedule when my fixed rate ends?

Your repayment is recalculated at the new rate for the balance and term that remain. Rerun the calculator with those figures to see the new schedule.

Can I overpay my mortgage?

Often, yes. Many lenders let you overpay up to 10% of the balance a year without an early repayment charge, but limits vary and some mortgages do not allow it, so check your offer document.

Why does my lender's statement differ slightly?

Your lender may work out interest in a slightly different way or take payments on a different date in the month. Fees added to the loan also change the figures, so treat this schedule as a close guide rather than an exact statement.

Sources

Figures come from institutions millions of people rely on. How we keep calculators accurate.