A way of repaying a loan with equal payments. At first most of each payment is interest; over time more of it repays principal.
An example
On a €180,000 mortgage at 3% over 25 years, the payment is €853.58; the first one has €450 of interest and €403.58 of principal.
Other calculators
Learn more
- What does a mortgage ten years longer cost?
- Extra payments: lower the payment or shorten the term?
- How much does an origination fee add to a loan?