Amortization Calculator
Understand how each payment splits between principal and interest.
Guide: Amortization Calculator
Visualize how each payment splits between principal and interest with this amortization calculator. Enter PKR principal, annual rate, and years to preview the first portion of your schedule. Amortization is the roadmap of debt payoff: seeing the first year of a mortgage often surprises first-time buyers because so little principal disappears at the start.
Reading an amortization table
Early rows show higher interest and lower principal. As the balance falls, interest charges shrink and principal portions rise.
The table lists the first twenty-four months or fewer if the loan is shorter.
Cumulative interest in early months is a useful eye-opener when deciding between a small rate reduction and a shorter term.
Prepayment intuition
Extra principal payments today reduce every future interest charge because they shrink the balance the rate applies to.
This preview does not assume prepayment; if you prepay, ask your bank for a revised schedule or model a lower remaining principal with fewer months left.
Why banks front-load interest
It is not a conspiracy—it is math. Interest is charged on the outstanding balance, which is largest at the beginning.
Refinancing resets the clock unless you shorten the new term to match remaining economic life of the debt.