Great Future · money
Loan amortisation explained
See how a fixed payment is split between interest and principal over time.
Reviewed 21 September 2026Direct answer
Amortisation is the scheduled reduction of a loan balance through payments. Interest is calculated on the outstanding balance, so early payments usually contain more interest and later payments more principal.
Open Loan Amortisation CalculatorWorked example
For a R100,000 balance at an entered annual rate and term, the calculator derives the periodic payment and shows every interest, principal and remaining-balance line. Add an extra payment to compare the term and interest change.
Limits to check
A lender quote may include initiation fees, monthly fees, insurance, variable rates, timing conventions and early-settlement terms outside a simple amortisation schedule.
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