Annuity (French) amortization

Mortgage payment schedule

The standard method lenders use: a fixed monthly payment where interest is charged on what you still owe — so early payments are mostly interest, and later ones mostly capital.

Property value

€

Down payment

€

Interest rate (yearly)

Term

years

Currency

Monthly payment (fixed)

€1,000.50

for 300 months

Total interest

€120,150

66.7% of the loan

Total repaid

€300,150

loan + interest over the full term

Where your money goes each year

Interest (per year)Capital (per year)peak year ≈ €12,006

First payment

€1,000.50 = €675.00 interest + €325.50 capital

Last payment

€1,000.50 = €3.74 interest + €996.76 capital

Remortgages

From the chosen payment #, the remaining balance becomes a new mortgage with its own interest rate and term.

Full payment schedule

Payment #	Date	Total payment	Interest	Capital	Remaining balance
1	Oct 2026	€1,000.50	€675.00	€325.50	€179,674.50
2	Nov 2026	€1,000.50	€673.78	€326.72	€179,347.78
3	Dec 2026	€1,000.50	€672.55	€327.94	€179,019.84
4	Jan 2027	€1,000.50	€671.32	€329.17	€178,690.66
5	Feb 2027	€1,000.50	€670.09	€330.41	€178,360.26
6	Mar 2027	€1,000.50	€668.85	€331.65	€178,028.61
7	Apr 2027	€1,000.50	€667.61	€332.89	€177,695.72
8	May 2027	€1,000.50	€666.36	€334.14	€177,361.58
9	Jun 2027	€1,000.50	€665.11	€335.39	€177,026.18
10	Jul 2027	€1,000.50	€663.85	€336.65	€176,689.53
11	Aug 2027	€1,000.50	€662.59	€337.91	€176,351.62
12	Sep 2027	€1,000.50	€661.32	€339.18	€176,012.44
13	Oct 2027	€1,000.50	€660.05	€340.45	€175,671.99
14	Nov 2027	€1,000.50	€658.77	€341.73	€175,330.26
15	Dec 2027	€1,000.50	€657.49	€343.01	€174,987.25
16	Jan 2028	€1,000.50	€656.20	€344.30	€174,642.96
17	Feb 2028	€1,000.50	€654.91	€345.59	€174,297.37
18	Mar 2028	€1,000.50	€653.62	€346.88	€173,950.48
19	Apr 2028	€1,000.50	€652.31	€348.18	€173,602.30
20	May 2028	€1,000.50	€651.01	€349.49	€173,252.81
21	Jun 2028	€1,000.50	€649.70	€350.80	€172,902.01
22	Jul 2028	€1,000.50	€648.38	€352.12	€172,549.89
23	Aug 2028	€1,000.50	€647.06	€353.44	€172,196.46
24	Sep 2028	€1,000.50	€645.74	€354.76	€171,841.70
25	Oct 2028	€1,000.50	€644.41	€356.09	€171,485.60
26	Nov 2028	€1,000.50	€643.07	€357.43	€171,128.18
27	Dec 2028	€1,000.50	€641.73	€358.77	€170,769.41
28	Jan 2029	€1,000.50	€640.39	€360.11	€170,409.30
29	Feb 2029	€1,000.50	€639.03	€361.46	€170,047.83
30	Mar 2029	€1,000.50	€637.68	€362.82	€169,685.01
31	Apr 2029	€1,000.50	€636.32	€364.18	€169,320.83
32	May 2029	€1,000.50	€634.95	€365.55	€168,955.29
33	Jun 2029	€1,000.50	€633.58	€366.92	€168,588.37
34	Jul 2029	€1,000.50	€632.21	€368.29	€168,220.08
35	Aug 2029	€1,000.50	€630.83	€369.67	€167,850.41
36	Sep 2029	€1,000.50	€629.44	€371.06	€167,479.35
37	Oct 2029	€1,000.50	€628.05	€372.45	€167,106.90
38	Nov 2029	€1,000.50	€626.65	€373.85	€166,733.05
39	Dec 2029	€1,000.50	€625.25	€375.25	€166,357.80
40	Jan 2030	€1,000.50	€623.84	€376.66	€165,981.14
41	Feb 2030	€1,000.50	€622.43	€378.07	€165,603.07
42	Mar 2030	€1,000.50	€621.01	€379.49	€165,223.59
43	Apr 2030	€1,000.50	€619.59	€380.91	€164,842.68
44	May 2030	€1,000.50	€618.16	€382.34	€164,460.34
45	Jun 2030	€1,000.50	€616.73	€383.77	€164,076.57
46	Jul 2030	€1,000.50	€615.29	€385.21	€163,691.35
47	Aug 2030	€1,000.50	€613.84	€386.66	€163,304.70
48	Sep 2030	€1,000.50	€612.39	€388.11	€162,916.59
49	Oct 2030	€1,000.50	€610.94	€389.56	€162,527.03
50	Nov 2030	€1,000.50	€609.48	€391.02	€162,136.01
51	Dec 2030	€1,000.50	€608.01	€392.49	€161,743.52
52	Jan 2031	€1,000.50	€606.54	€393.96	€161,349.56
53	Feb 2031	€1,000.50	€605.06	€395.44	€160,954.12
54	Mar 2031	€1,000.50	€603.58	€396.92	€160,557.20
55	Apr 2031	€1,000.50	€602.09	€398.41	€160,158.79
56	May 2031	€1,000.50	€600.60	€399.90	€159,758.89
57	Jun 2031	€1,000.50	€599.10	€401.40	€159,357.49
58	Jul 2031	€1,000.50	€597.59	€402.91	€158,954.58
59	Aug 2031	€1,000.50	€596.08	€404.42	€158,550.16
60	Sep 2031	€1,000.50	€594.56	€405.94	€158,144.23
61	Oct 2031	€1,000.50	€593.04	€407.46	€157,736.77
62	Nov 2031	€1,000.50	€591.51	€408.99	€157,327.78
63	Dec 2031	€1,000.50	€589.98	€410.52	€156,917.26
64	Jan 2032	€1,000.50	€588.44	€412.06	€156,505.20
65	Feb 2032	€1,000.50	€586.89	€413.60	€156,091.60
66	Mar 2032	€1,000.50	€585.34	€415.15	€155,676.45
67	Apr 2032	€1,000.50	€583.79	€416.71	€155,259.73
68	May 2032	€1,000.50	€582.22	€418.27	€154,841.46
69	Jun 2032	€1,000.50	€580.66	€419.84	€154,421.62
70	Jul 2032	€1,000.50	€579.08	€421.42	€154,000.20
71	Aug 2032	€1,000.50	€577.50	€423.00	€153,577.20
72	Sep 2032	€1,000.50	€575.91	€424.58	€153,152.62
73	Oct 2032	€1,000.50	€574.32	€426.18	€152,726.44
74	Nov 2032	€1,000.50	€572.72	€427.77	€152,298.67
75	Dec 2032	€1,000.50	€571.12	€429.38	€151,869.29
76	Jan 2033	€1,000.50	€569.51	€430.99	€151,438.30
77	Feb 2033	€1,000.50	€567.89	€432.60	€151,005.70
78	Mar 2033	€1,000.50	€566.27	€434.23	€150,571.47
79	Apr 2033	€1,000.50	€564.64	€435.86	€150,135.61
80	May 2033	€1,000.50	€563.01	€437.49	€149,698.12
81	Jun 2033	€1,000.50	€561.37	€439.13	€149,258.99
82	Jul 2033	€1,000.50	€559.72	€440.78	€148,818.22
83	Aug 2033	€1,000.50	€558.07	€442.43	€148,375.79
84	Sep 2033	€1,000.50	€556.41	€444.09	€147,931.70
85	Oct 2033	€1,000.50	€554.74	€445.75	€147,485.94
86	Nov 2033	€1,000.50	€553.07	€447.43	€147,038.52
87	Dec 2033	€1,000.50	€551.39	€449.10	€146,589.41
88	Jan 2034	€1,000.50	€549.71	€450.79	€146,138.62
89	Feb 2034	€1,000.50	€548.02	€452.48	€145,686.14
90	Mar 2034	€1,000.50	€546.32	€454.18	€145,231.97
91	Apr 2034	€1,000.50	€544.62	€455.88	€144,776.09
92	May 2034	€1,000.50	€542.91	€457.59	€144,318.50
93	Jun 2034	€1,000.50	€541.19	€459.30	€143,859.20
94	Jul 2034	€1,000.50	€539.47	€461.03	€143,398.17
95	Aug 2034	€1,000.50	€537.74	€462.76	€142,935.42
96	Sep 2034	€1,000.50	€536.01	€464.49	€142,470.93
97	Oct 2034	€1,000.50	€534.27	€466.23	€142,004.69
98	Nov 2034	€1,000.50	€532.52	€467.98	€141,536.71
99	Dec 2034	€1,000.50	€530.76	€469.74	€141,066.98
100	Jan 2035	€1,000.50	€529.00	€471.50	€140,595.48
101	Feb 2035	€1,000.50	€527.23	€473.27	€140,122.21
102	Mar 2035	€1,000.50	€525.46	€475.04	€139,647.17
103	Apr 2035	€1,000.50	€523.68	€476.82	€139,170.35
104	May 2035	€1,000.50	€521.89	€478.61	€138,691.74
105	Jun 2035	€1,000.50	€520.09	€480.40	€138,211.34
106	Jul 2035	€1,000.50	€518.29	€482.21	€137,729.13
107	Aug 2035	€1,000.50	€516.48	€484.01	€137,245.12
108	Sep 2035	€1,000.50	€514.67	€485.83	€136,759.29
109	Oct 2035	€1,000.50	€512.85	€487.65	€136,271.64
110	Nov 2035	€1,000.50	€511.02	€489.48	€135,782.16
111	Dec 2035	€1,000.50	€509.18	€491.32	€135,290.84
112	Jan 2036	€1,000.50	€507.34	€493.16	€134,797.68
113	Feb 2036	€1,000.50	€505.49	€495.01	€134,302.68
114	Mar 2036	€1,000.50	€503.64	€496.86	€133,805.81
115	Apr 2036	€1,000.50	€501.77	€498.73	€133,307.09
116	May 2036	€1,000.50	€499.90	€500.60	€132,806.49
117	Jun 2036	€1,000.50	€498.02	€502.47	€132,304.02
118	Jul 2036	€1,000.50	€496.14	€504.36	€131,799.66
119	Aug 2036	€1,000.50	€494.25	€506.25	€131,293.41
120	Sep 2036	€1,000.50	€492.35	€508.15	€130,785.26
121	Oct 2036	€1,000.50	€490.44	€510.05	€130,275.21
122	Nov 2036	€1,000.50	€488.53	€511.97	€129,763.24
123	Dec 2036	€1,000.50	€486.61	€513.89	€129,249.35
124	Jan 2037	€1,000.50	€484.69	€515.81	€128,733.54
125	Feb 2037	€1,000.50	€482.75	€517.75	€128,215.79
126	Mar 2037	€1,000.50	€480.81	€519.69	€127,696.10
127	Apr 2037	€1,000.50	€478.86	€521.64	€127,174.46
128	May 2037	€1,000.50	€476.90	€523.59	€126,650.87
129	Jun 2037	€1,000.50	€474.94	€525.56	€126,125.31
130	Jul 2037	€1,000.50	€472.97	€527.53	€125,597.78
131	Aug 2037	€1,000.50	€470.99	€529.51	€125,068.28
132	Sep 2037	€1,000.50	€469.01	€531.49	€124,536.79
133	Oct 2037	€1,000.50	€467.01	€533.49	€124,003.30
134	Nov 2037	€1,000.50	€465.01	€535.49	€123,467.81
135	Dec 2037	€1,000.50	€463.00	€537.49	€122,930.32
136	Jan 2038	€1,000.50	€460.99	€539.51	€122,390.81
137	Feb 2038	€1,000.50	€458.97	€541.53	€121,849.28
138	Mar 2038	€1,000.50	€456.93	€543.56	€121,305.71
139	Apr 2038	€1,000.50	€454.90	€545.60	€120,760.11
140	May 2038	€1,000.50	€452.85	€547.65	€120,212.46
141	Jun 2038	€1,000.50	€450.80	€549.70	€119,662.76
142	Jul 2038	€1,000.50	€448.74	€551.76	€119,111.00
143	Aug 2038	€1,000.50	€446.67	€553.83	€118,557.17
144	Sep 2038	€1,000.50	€444.59	€555.91	€118,001.26
145	Oct 2038	€1,000.50	€442.50	€557.99	€117,443.26
146	Nov 2038	€1,000.50	€440.41	€560.09	€116,883.18
147	Dec 2038	€1,000.50	€438.31	€562.19	€116,320.99
148	Jan 2039	€1,000.50	€436.20	€564.29	€115,756.70
149	Feb 2039	€1,000.50	€434.09	€566.41	€115,190.28
150	Mar 2039	€1,000.50	€431.96	€568.53	€114,621.75
151	Apr 2039	€1,000.50	€429.83	€570.67	€114,051.08
152	May 2039	€1,000.50	€427.69	€572.81	€113,478.28
153	Jun 2039	€1,000.50	€425.54	€574.95	€112,903.32
154	Jul 2039	€1,000.50	€423.39	€577.11	€112,326.21
155	Aug 2039	€1,000.50	€421.22	€579.28	€111,746.94
156	Sep 2039	€1,000.50	€419.05	€581.45	€111,165.49
157	Oct 2039	€1,000.50	€416.87	€583.63	€110,581.86
158	Nov 2039	€1,000.50	€414.68	€585.82	€109,996.04
159	Dec 2039	€1,000.50	€412.49	€588.01	€109,408.03
160	Jan 2040	€1,000.50	€410.28	€590.22	€108,817.81
161	Feb 2040	€1,000.50	€408.07	€592.43	€108,225.38
162	Mar 2040	€1,000.50	€405.85	€594.65	€107,630.73
163	Apr 2040	€1,000.50	€403.62	€596.88	€107,033.84
164	May 2040	€1,000.50	€401.38	€599.12	€106,434.72
165	Jun 2040	€1,000.50	€399.13	€601.37	€105,833.35
166	Jul 2040	€1,000.50	€396.88	€603.62	€105,229.73
167	Aug 2040	€1,000.50	€394.61	€605.89	€104,623.84
168	Sep 2040	€1,000.50	€392.34	€608.16	€104,015.68
169	Oct 2040	€1,000.50	€390.06	€610.44	€103,405.24
170	Nov 2040	€1,000.50	€387.77	€612.73	€102,792.52
171	Dec 2040	€1,000.50	€385.47	€615.03	€102,177.49
172	Jan 2041	€1,000.50	€383.17	€617.33	€101,560.16
173	Feb 2041	€1,000.50	€380.85	€619.65	€100,940.51
174	Mar 2041	€1,000.50	€378.53	€621.97	€100,318.54
175	Apr 2041	€1,000.50	€376.19	€624.30	€99,694.23
176	May 2041	€1,000.50	€373.85	€626.65	€99,067.59
177	Jun 2041	€1,000.50	€371.50	€629.00	€98,438.59
178	Jul 2041	€1,000.50	€369.14	€631.35	€97,807.24
179	Aug 2041	€1,000.50	€366.78	€633.72	€97,173.52
180	Sep 2041	€1,000.50	€364.40	€636.10	€96,537.42
181	Oct 2041	€1,000.50	€362.02	€638.48	€95,898.94
182	Nov 2041	€1,000.50	€359.62	€640.88	€95,258.06
183	Dec 2041	€1,000.50	€357.22	€643.28	€94,614.78
184	Jan 2042	€1,000.50	€354.81	€645.69	€93,969.09
185	Feb 2042	€1,000.50	€352.38	€648.11	€93,320.97
186	Mar 2042	€1,000.50	€349.95	€650.54	€92,670.43
187	Apr 2042	€1,000.50	€347.51	€652.98	€92,017.44
188	May 2042	€1,000.50	€345.07	€655.43	€91,362.01
189	Jun 2042	€1,000.50	€342.61	€657.89	€90,704.12
190	Jul 2042	€1,000.50	€340.14	€660.36	€90,043.76
191	Aug 2042	€1,000.50	€337.66	€662.83	€89,380.93
192	Sep 2042	€1,000.50	€335.18	€665.32	€88,715.61
193	Oct 2042	€1,000.50	€332.68	€667.81	€88,047.79
194	Nov 2042	€1,000.50	€330.18	€670.32	€87,377.47
195	Dec 2042	€1,000.50	€327.67	€672.83	€86,704.64
196	Jan 2043	€1,000.50	€325.14	€675.36	€86,029.28
197	Feb 2043	€1,000.50	€322.61	€677.89	€85,351.39
198	Mar 2043	€1,000.50	€320.07	€680.43	€84,670.96
199	Apr 2043	€1,000.50	€317.52	€682.98	€83,987.98
200	May 2043	€1,000.50	€314.95	€685.54	€83,302.44
201	Jun 2043	€1,000.50	€312.38	€688.11	€82,614.32
202	Jul 2043	€1,000.50	€309.80	€690.69	€81,923.63
203	Aug 2043	€1,000.50	€307.21	€693.28	€81,230.34
204	Sep 2043	€1,000.50	€304.61	€695.88	€80,534.46
205	Oct 2043	€1,000.50	€302.00	€698.49	€79,835.96
206	Nov 2043	€1,000.50	€299.38	€701.11	€79,134.85
207	Dec 2043	€1,000.50	€296.76	€703.74	€78,431.11
208	Jan 2044	€1,000.50	€294.12	€706.38	€77,724.73
209	Feb 2044	€1,000.50	€291.47	€709.03	€77,015.70
210	Mar 2044	€1,000.50	€288.81	€711.69	€76,304.01
211	Apr 2044	€1,000.50	€286.14	€714.36	€75,589.65
212	May 2044	€1,000.50	€283.46	€717.04	€74,872.61
213	Jun 2044	€1,000.50	€280.77	€719.73	€74,152.88
214	Jul 2044	€1,000.50	€278.07	€722.43	€73,430.46
215	Aug 2044	€1,000.50	€275.36	€725.13	€72,705.32
216	Sep 2044	€1,000.50	€272.64	€727.85	€71,977.47
217	Oct 2044	€1,000.50	€269.92	€730.58	€71,246.89
218	Nov 2044	€1,000.50	€267.18	€733.32	€70,513.57
219	Dec 2044	€1,000.50	€264.43	€736.07	€69,777.49
220	Jan 2045	€1,000.50	€261.67	€738.83	€69,038.66
221	Feb 2045	€1,000.50	€258.89	€741.60	€68,297.06
222	Mar 2045	€1,000.50	€256.11	€744.38	€67,552.67
223	Apr 2045	€1,000.50	€253.32	€747.18	€66,805.50
224	May 2045	€1,000.50	€250.52	€749.98	€66,055.52
225	Jun 2045	€1,000.50	€247.71	€752.79	€65,302.73
226	Jul 2045	€1,000.50	€244.89	€755.61	€64,547.11
227	Aug 2045	€1,000.50	€242.05	€758.45	€63,788.67
228	Sep 2045	€1,000.50	€239.21	€761.29	€63,027.38
229	Oct 2045	€1,000.50	€236.35	€764.15	€62,263.23
230	Nov 2045	€1,000.50	€233.49	€767.01	€61,496.22
231	Dec 2045	€1,000.50	€230.61	€769.89	€60,726.33
232	Jan 2046	€1,000.50	€227.72	€772.77	€59,953.56
233	Feb 2046	€1,000.50	€224.83	€775.67	€59,177.89
234	Mar 2046	€1,000.50	€221.92	€778.58	€58,399.30
235	Apr 2046	€1,000.50	€219.00	€781.50	€57,617.80
236	May 2046	€1,000.50	€216.07	€784.43	€56,833.37
237	Jun 2046	€1,000.50	€213.13	€787.37	€56,046.00
238	Jul 2046	€1,000.50	€210.17	€790.33	€55,255.67
239	Aug 2046	€1,000.50	€207.21	€793.29	€54,462.38
240	Sep 2046	€1,000.50	€204.23	€796.26	€53,666.12
241	Oct 2046	€1,000.50	€201.25	€799.25	€52,866.87
242	Nov 2046	€1,000.50	€198.25	€802.25	€52,064.62
243	Dec 2046	€1,000.50	€195.24	€805.26	€51,259.36
244	Jan 2047	€1,000.50	€192.22	€808.28	€50,451.09
245	Feb 2047	€1,000.50	€189.19	€811.31	€49,639.78
246	Mar 2047	€1,000.50	€186.15	€814.35	€48,825.43
247	Apr 2047	€1,000.50	€183.10	€817.40	€48,008.03
248	May 2047	€1,000.50	€180.03	€820.47	€47,187.56
249	Jun 2047	€1,000.50	€176.95	€823.55	€46,364.01
250	Jul 2047	€1,000.50	€173.87	€826.63	€45,537.38
251	Aug 2047	€1,000.50	€170.77	€829.73	€44,707.65
252	Sep 2047	€1,000.50	€167.65	€832.84	€43,874.80
253	Oct 2047	€1,000.50	€164.53	€835.97	€43,038.84
254	Nov 2047	€1,000.50	€161.40	€839.10	€42,199.73
255	Dec 2047	€1,000.50	€158.25	€842.25	€41,357.48
256	Jan 2048	€1,000.50	€155.09	€845.41	€40,512.07
257	Feb 2048	€1,000.50	€151.92	€848.58	€39,663.50
258	Mar 2048	€1,000.50	€148.74	€851.76	€38,811.74
259	Apr 2048	€1,000.50	€145.54	€854.95	€37,956.78
260	May 2048	€1,000.50	€142.34	€858.16	€37,098.62
261	Jun 2048	€1,000.50	€139.12	€861.38	€36,237.24
262	Jul 2048	€1,000.50	€135.89	€864.61	€35,372.63
263	Aug 2048	€1,000.50	€132.65	€867.85	€34,504.78
264	Sep 2048	€1,000.50	€129.39	€871.11	€33,633.68
265	Oct 2048	€1,000.50	€126.13	€874.37	€32,759.31
266	Nov 2048	€1,000.50	€122.85	€877.65	€31,881.65
267	Dec 2048	€1,000.50	€119.56	€880.94	€31,000.71
268	Jan 2049	€1,000.50	€116.25	€884.25	€30,116.47
269	Feb 2049	€1,000.50	€112.94	€887.56	€29,228.90
270	Mar 2049	€1,000.50	€109.61	€890.89	€28,338.01
271	Apr 2049	€1,000.50	€106.27	€894.23	€27,443.78
272	May 2049	€1,000.50	€102.91	€897.58	€26,546.20
273	Jun 2049	€1,000.50	€99.55	€900.95	€25,645.25
274	Jul 2049	€1,000.50	€96.17	€904.33	€24,740.92
275	Aug 2049	€1,000.50	€92.78	€907.72	€23,833.20
276	Sep 2049	€1,000.50	€89.37	€911.12	€22,922.08
277	Oct 2049	€1,000.50	€85.96	€914.54	€22,007.54
278	Nov 2049	€1,000.50	€82.53	€917.97	€21,089.57
279	Dec 2049	€1,000.50	€79.09	€921.41	€20,168.15
280	Jan 2050	€1,000.50	€75.63	€924.87	€19,243.28
281	Feb 2050	€1,000.50	€72.16	€928.34	€18,314.95
282	Mar 2050	€1,000.50	€68.68	€931.82	€17,383.13
283	Apr 2050	€1,000.50	€65.19	€935.31	€16,447.82
284	May 2050	€1,000.50	€61.68	€938.82	€15,509.00
285	Jun 2050	€1,000.50	€58.16	€942.34	€14,566.66
286	Jul 2050	€1,000.50	€54.62	€945.87	€13,620.79
287	Aug 2050	€1,000.50	€51.08	€949.42	€12,671.37
288	Sep 2050	€1,000.50	€47.52	€952.98	€11,718.39
289	Oct 2050	€1,000.50	€43.94	€956.55	€10,761.83
290	Nov 2050	€1,000.50	€40.36	€960.14	€9,801.69
291	Dec 2050	€1,000.50	€36.76	€963.74	€8,837.95
292	Jan 2051	€1,000.50	€33.14	€967.36	€7,870.59
293	Feb 2051	€1,000.50	€29.51	€970.98	€6,899.61
294	Mar 2051	€1,000.50	€25.87	€974.62	€5,924.98
295	Apr 2051	€1,000.50	€22.22	€978.28	€4,946.70
296	May 2051	€1,000.50	€18.55	€981.95	€3,964.75
297	Jun 2051	€1,000.50	€14.87	€985.63	€2,979.12
298	Jul 2051	€1,000.50	€11.17	€989.33	€1,989.80
299	Aug 2051	€1,000.50	€7.46	€993.04	€996.76
300	Sep 2051	€1,000.50	€3.74	€996.76	€0.00

Interest each month = remaining balance × (yearly rate ÷ 12). Capital = fixed payment − interest. Any extra you add for a month goes entirely to capital and reduces every interest charge after it. The final payment is adjusted so the balance reaches exactly zero.