The amortization table displays the breakdown of the monthly bond repayment into an interest and capital portion over the entire bond period. It also reflects the outstanding capital amount at the end of every month during the bond period.
At the beginning of the bond period, the interest portion is the most significant because the outstanding capital is at its highest level. The interest portion gradually reduces as capital is repaid and the capital portion increases.
Near the end of the bond period, the monthly bond repayment consists almost entirely of capital. It is interesting to note the percentage of capital which is outstanding throughout the bond period – generally, after 10 years of bond repayments, more than approximately 80% of the original capital will still be outstanding and after 15 years, more than approximately 50% will still be outstanding!
Using Amortization Calculator
Our Amortization calculator shows you how much of your bond instalment goes towards interest and how much towards reducing the actual home loan amount.
Our amortization calculator will give you a picture of how much your loan reduces by every month, over the full period of the loan. You can determine how much of your instalment goes towards interest and how much towards reducing the actual loan amount.
Sometimes home owners decide to fix the interest rate on their home loan for an initial period of time. If this is the case for you, you can also include this in the calculation, as well as the base rate and term for the remainder of the home loan period. The calculator will give you a result based on this combination of factors.
You will know exactly how much you spend on your home loan every year, how much of that money will go towards interest and how much will be used to reduce capital debt.