See exactly where every pound of your repayments goes — how much reduces your debt versus how much goes to the lender as interest — month by month and year by year.
| Year | Interest Paid | Principal Paid | Total Paid | Remaining Balance | % Paid Off | Split |
|---|
In the early months of a loan, the majority of each payment is interest. As the balance falls, more goes toward principal. This is called front-loaded amortisation and is why paying off early saves disproportionately more the earlier you do it.
The crossover is the month where your principal payment first exceeds your interest payment. Before this point, more of your money benefits the lender. After it, more of your money goes toward actually reducing your debt.