Example 1 — Mortgage, declining
- Amount: 200,000
- Rate: 7.5%
- Term: 240 months (20 years)
Highest first payment
Last ≈ principal slice + small interest
Interest often below annuity
Higher start burden, faster early principal reduction.
Decreasing instalment
Declining-balance schedule: fixed principal slice and shrinking interest — with a comparison to equal (annuity) instalments.
Educational model, not a full bank schedule. Principal slice = amount ÷ months; interest on the current balance. Distinct from the equal/annuity loan instalment calculator. Amounts use the header currency.
Results
Enter data and click Calculate.
How results are calculated
Principal slice = amount ÷ months (fixed in the contractual model).
Interest in a month = balance × (annual rate ÷ 100 ÷ 12). Payment = slice + interest (+ optional overpayment).
First / last / average from the simulation. All-in = sum of instalments + upfront fee + monthly fee × actual months paid.
Equal instalment = classic annuity on the same inputs — to compare start burden and total interest. Full table: amortization schedule.
How to use
- Enter amount, nominal annual rate (%), and term in months.
- Optionally add a start date, upfront fee, monthly fee, or simple overpayment.
- Keep the equal-instalment comparison on to see first-payment and interest gaps.
- For month-by-month detail use the amortization schedule; for a flat annuity use Loan instalment.
Examples
Example 2 — Cash loan + fee
- Amount: 50,000
- 11%, 60 months
- Upfront fee: 500
All-in = instalments + 500
Compare first payment vs annuity
Shorter term — payment drop is easier to see.
Example 3 — Overpayment + monthly fee
- Amount: 300,000
- 6.5%, 300 months
- Fee 15/mo, extra +200
Overpayment shortens term
Fees raise all-in
Simplified overpayment — details in the amortization schedule.
FAQ
How does a decreasing instalment differ from an equal (annuity) payment?
In a decreasing schedule the principal slice is fixed (amount ÷ months) and interest falls with the balance — so the payment declines. With an annuity the payment stays flat; only the interest/principal split inside it changes.
Why is the first decreasing payment higher?
The balance is largest at the start, so interest is highest. That interest is added to the fixed principal slice.
Is a decreasing loan cheaper overall?
On the same amount, rate and term, total interest is often lower than with an annuity because principal falls faster early on. The trade-off is a higher starting payment.
Is this a full bank amortization schedule?
No. You get a summary (first/last/average, interest, comparison). For a month-by-month table use the amortization schedule calculator.
How does the optional monthly overpayment work?
Simplified model: the contractual principal slice stays P÷n; extra reduces the balance and may shorten the term. Your lender may settle differently — check the contract.
Is this APR / APRC?
No. You can add an upfront fee and monthly fee into all-in cost, but this remains an educational model — statutory APRC may be computed differently.
When prefer an equal instalment instead?
When you want a predictable flat payment and a lower starting burden. The comparison here shows the start gap and total interest difference.
Where does the result currency come from?
From the currency set in the page header. Changing it reformats amounts.