Illustrative estimates based on the numbers entered. Actual investment returns, lender calculations, fees and repayment schedules may differ. Not investment, lending, credit, tax or debt advice.
A minimum set as a percentage of the balance falls as the balance falls, so each payment does less work than the last. Compoundly shows the payment size shrinking and the timeline stretching.
Each bar is one payment. The minimum is a percentage of the balance, so as the balance falls the payment falls with it — which is why the schedule stretches out.
Holding the first payment of €150 flat instead:
That is 12 yr 9 mo sooner and €4,216 less interest under these assumptions.
Every line comes from the same engine that draws the chart.
| X | Minimum payments only | Hold the first payment (150) |
|---|---|---|
| 0y | €5.0k | €5.0k |
| 1y | €4.2k | €4.0k |
| 3y | €3.5k | €2.6k |
| 4y | €2.9k | €712 |
| 5y | €2.4k | €0 |
| 7y | €2.0k | €0 |
| 8y | €1.7k | €0 |
| 9y | €1.4k | €0 |
| 10y | €1.1k | €0 |
| 12y | €956 | €0 |
| 13y | €794 | €0 |
| 14y | €607 | €0 |
| 16y | €358 | €0 |
| 17y | €27 | €0 |
Results are illustrative estimates based on the numbers you enter. Actual investment returns, lender calculations, fees and repayment schedules may differ. Compoundly is not investment, lending, tax or debt advice.
Issuers word minimum payments differently, so the rule here is configurable rather than assumed: a percentage of the balance, a minimum cash amount, and optionally the interest charge added on top. The payment due each period is the larger of those, capped at the full amount owed.
Because the percentage applies to a falling balance, the payment falls too. Holding the first payment flat instead of letting it decline is the single change the chart makes most visible — the comparison is shown directly beneath the result, using the same engine for both.