How Interest Works
$
%
$
Key Takeaways
  • Interest-only payment—
  • Your payment—
  • Paid off in—
⚠ Interest-Only Payment
Interest Only / Month
—
loan balance stays at — forever

At this payment, you cover only the interest. The loan balance never decreases — every dollar goes straight to the lender. You are renting the money indefinitely.

✓ Your Payment — — / Month
Paid Off In
—
Total Paid
—
Total Interest Paid
—

Your payment covers interest and chips away at the balance. As the balance drops each month, so does the interest charge — meaning more of each payment attacks the principal.

Amortization — Watch Interest Shrink as Balance Falls
MoPaymentPrincipalInterestBalance
How Compound Interest Works
$
$
%
Key Takeaways
  • Total contributions—
  • Future value—
Total Contributions vs Total Value Over Time
Total Contributions Total Value (with compound growth)

Want to see compounding in action? Keep everything the same — then add 10 years to your time horizon. Watch how dramatically the total value accelerates.

How Loan Amortization Works
$
%
Key Takeaways
  • Monthly payment—
  • Pay off in—

This site is for educational and informational purposes only. Please consult with qualified financial professionals regarding your own circumstances. Nothing on this site constitutes financial advice.

⚠ Alert