See how much of a payment is interest
Split a run of loan payments into interest, principal and remaining balance.
Each payment on a loan has two parts. One part pays the interest that built up, and the rest reduces the amount you owe. Early on, most of the payment is interest.
This example uses the 30-year, 200,000 loan at 6% from the loan payment guide. We look at the first 12 payments (year one).
Classic Financial II
Start on the main screen: Press 2ND then CPT (QUIT) to leave a worksheet and return to the plain calculator. ON/OFF also drops back to the standard screen and clears an error.
Set 12 payments a year, then enter the loan and compute the payment.
2NDP/YI/Y12ENTER2NDQUITCPT360N6I/Y200000PV0FVCPTPMTOpen the amortization worksheet (2nd, PV). It asks for the first payment, P1. Type 1 and press enter.
2NDAMORTPV1ENTERMove down to the last payment, P2. Type 12 and press enter.
↓12ENTERKeep pressing the down arrow. You will see the balance after payment 12, then the principal paid, then the interest paid.
↓↓↓
You should seeInterest paid in year one is 11,933.19. The principal line just above it shows 2,456.01, and the balance left is 197,543.99.
RPN Financial 12
Start on the main screen: There is no menu to leave: the display always shows the X register. Press f then R/S (P/R) to leave program mode, and clear a pending prefix by pressing ON.
Enter the loan and compute the payment.
360n6g12÷i200000PV0FVPMTType how many payments to analyse, 12, then press f and n (AMORT).
12fAMORTnThe display shows the interest paid. The principal is one level up the stack (press x⇄y to see it), and the number of payments sits above that.
You should see-11,933.19 -2,456.01 12.00
Press f, n again to move on to payments 13 to 24.
Tips
- Totals are negative because they are money you pay out. Interest plus principal for the year equals 12 payments of 1,199.10.