So funktioniert's
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
Die Formel
Each payment splits into interest on the current balance plus principal.
Rechenbeispiel
Early payments are mostly interest; the principal share grows every month until the balance reaches zero.
Häufige Fragen
Why is early interest so high?
Interest is charged on the outstanding balance, which is largest at the start.
Can I pay off faster?
Yes — extra principal payments shorten the schedule and cut total interest.
Tipps
- Compare the total interest, not just the monthly payment.
- A larger down payment lowers both the loan and any insurance.
- Even small extra principal payments cut years off the term.
Begriffe
- Principal
- The amount borrowed, before interest.
- Amortization
- Spreading repayment into equal periodic payments.
- Escrow
- Funds held for taxes and insurance.