Year-by-year balance
| Year | Principal paid | Interest paid | Remaining balance |
|---|
How the payment is calculated
The monthly payment uses the standard amortization formula: M = P·r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r the monthly interest rate (annual rate ÷ 12), and n the number of monthly payments. Early payments are mostly interest; the split shifts toward principal over time — that's what the table shows.