What an Amortization Schedule Shows
Amortisation is the process of paying a loan off in equal instalments. Every payment you make splits in two: an interest portion that pays the lender for the month just passed, and a principal portion that permanently reduces what you owe. Because the balance shrinks with every payment, the interest portion shrinks too — which means the principal portion grows, even though the total instalment never changes. The last payment lands on a balance of exactly zero.
That split is what this calculator exposes. Early on, interest dominates: on the example inputs (¥100,000 at the illustrative 4.50% rate over five years) the first payment is roughly ¥375 interest and only ¥1,545 principal. By the final year almost the whole instalment is principal. Seeing this split is genuinely useful — it explains why early extra payments save so much interest (they knock principal off at the point where it would otherwise be compounding for years), and why settling a loan early saves less than most people guess once the interest-heavy years are behind them.
Reading the Tables
The year-by-year schedule keeps things compact on a phone: one row per year with that year's total interest, total principal, and the balance still owed at year end. If you want the fine detail, open "See your first 12 payments" for the payment-level view — payment number, interest, principal and the remaining balance after each one. Both tables recompute instantly whenever you change an input, including the payment frequency, which re-shapes the entire schedule.
Payment Frequency
Monthly schedules are the default because they are the norm in China. Fortnightly (26 payments a year) and weekly (52) schedules reduce the balance more often, so slightly less interest accrues over the life of the loan — a modest but real saving at the same annual rate. The schedule assumes interest accrues at the same frequency as payments, which is the convention shown in every figure here. Whichever frequency you pick, the calculator keeps the term identical, so you can compare the total interest side by side.
What the Results Mean
- Payment — the equal instalment for the frequency you chose (monthly, fortnightly or weekly).
- First payment portions — how the very first instalment splits between the lender's interest and your principal.
- Total Interest — every yuan of interest across the whole term.
- Total Repayment — principal plus interest: the full amount you will hand over.
Related China Calculators
- China Loan Calculator — the headline numbers without the schedule.
- China Car Loan Calculator — vehicle finance with down payment and fees.
- China Mortgage Calculator — 30-year property schedules with LTV.
Frequently Asked Questions
Why is so much of my first payment interest?
Interest is charged on the outstanding balance, which is at its maximum at the start. Each payment covers that interest first, with the remainder reducing principal. As the balance falls, the interest portion of the same instalment falls too — so later payments are mostly principal.
What interest rate should I enter?
The annual rate on your loan quote. The 4.50% pre-filled in the box is an illustrative example only — NOT a current Chinese market rate. Finance Atlas never fills in a current market rate, because your real rate depends on your lender and credit profile.
Which payment frequency should I choose?
Match your loan: monthly is standard in China. Fortnightly or weekly schedules pay the principal down more often, saving a little interest at the same rate — useful if you are paid on those cycles.
Can this calculator show extra payments or early settlement?
Not in this version — it models a fixed equal-instalment schedule. Extra-payment scenarios change the whole schedule and would need a dedicated tool.
Does the schedule handle balloon or bullet loans?
No. It is a fully amortising loan where the final payment clears the balance to exactly zero. Loans with a final balloon (common in some vehicle structures) need the balloon modelled separately.
Disclaimer: Finance Atlas is not a licensed lender or financial adviser in the People's Republic of China. This calculator provides educational estimates only and does not constitute financial advice. Confirm exact figures with your lender.