During the early years of your loan repayment, most of the funds from each payment will go toward interest, not the principal. At some point that changes, and your payments start contributing toward the principal balance rather than interest. All of this information is detailed in the amortization schedule, which is really a chart that details each payment. Here’s an example of a section of an amortization schedule:
The details of each of your loan payments are in the amortization schedule -- how much each payment is, when the payment is due, which number the payment is in the series, how much of the payment goes toward the principal and how much goes towards interest, and the total remaining interest and principal balances.
SBA Loan Amortization Schedule Calculator
Calculating an amortization schedule is relatively simple. You will need to know the following information:
• Loan amount: The total amount borrowed from the lender
• Interest rate: The annual percentage rate (APR) charged by the lender
• Loan term: The length of time in which the loan must be repaid