How to read a loan amortisation schedule

Step 1 — find the four columns

An amortisation schedule lists, per payment: the instalment, the interest portion, the capital portion, and the remaining balance. Every row is one payment.

Step 2 — see the interest/capital split shift

Early rows are interest-heavy because interest is charged on a large balance — this is front-loaded interest. Later rows are capital-heavy as the balance shrinks. The instalment stays the same; the split changes.

Step 3 — track the falling balance

The balance column shows what you would still owe after each payment. It tells you the settlement position at any point, before any charge.

Step 4 — use it to judge overpayments and early settlement

Because interest is on the balance, an overpayment against the principal removes future interest. The schedule shows how much. Generate one with the calculator below.

Step 5 — check it against your quote

The final balance should reach zero at term end, and the total interest should match the quote. If not, query it.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.