With any mortgage or loan, the payback schedule differs depending on the value of the loan, the payback term of the loan and the interest rate. The repayment of a fixed-term loan over time is called amortisation as the payments are paid back in equal installments.

Within the equal payments the loan payments are split into two parts which are paying off the loan principal and the other is paying off the loan interest. As you will see by using the amortisation schedule calculator below, the principal and interest portions of the monthly payment change over time with more interest paid proportionally at the start of the loan and more principal paid towards the end.