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How Amortization Front-Loads the Interest on a Loan

September 17, 2026 by Asfat
Stacked bar chart showing how a fixed loan payment shifts from mostly interest in early months to mostly principal in later months, as the loan balance declines over time.

Nothing is front-loaded on purpose. Interest is charged on the balance, the balance starts large, and a level payment does the rest. Here is the sum, month by month.

Categories How Interest Works Tags amortization, interest, loans, personal finance basics, statements Leave a comment

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