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Loan amortization spreads equal payments over the loan term. Each payment first covers accrued interest, with the remainder reducing the principal. Early payments are mostly interest; later ones mostly principal.

Водич корак по корак

1. 1Convert annual rate to monthly: r = annual rate ÷ 12
2. 2Calculate n = total payments (years × 12)
3. 3Apply: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
4. 4Total interest = (M × n) − P

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