How do extra loan payments work?
Extra payments go directly to your principal balance, which reduces the amount interest is calculated on. Even a small extra payment each month can shave years off your loan and save thousands in interest. The calculator shows exactly how much you save.
What is loan amortisation?
Amortisation is the process of paying off a loan in equal installments over time. In the early months, most of your payment goes to interest. Over time, as the balance decreases, more goes to principal. The amortisation schedule shows this breakdown for each payment.