Annuity Payment (Installment)
A fixed regular payment that fully repays a loan over its term, blending interest and principal in each instalment.
An annuity payment is the constant amount you pay each period on most loans and mortgages. Early on, most of each payment goes to interest and little to principal; over time the balance shifts until the loan is fully repaid. Because the payment stays level, it is easy to budget around, even as its internal split changes. Understanding this structure shows why extra early payments are so powerful, they attack principal directly. Assetli's loan and mortgage tools break down how much of each payment is interest versus principal.
Example
On a $200,000 mortgage at 5% over 25 years, the annuity payment is about $1,170 a month, fixed, even though the interest portion shrinks year by year.
Try in Assetli
Read more
Related terms
Amortization
The process of gradually paying off a loan through regular payments that cover both principal and interest, with early payments being mostly interest.
Mortgage
A long-term loan secured by real property, used to finance the purchase of a home or investment property, typically repaid over 15–30 years.
Interest Rate
The percentage charged on borrowed money or earned on deposited/invested money, expressed as an annual rate.
APR (Annual Percentage Rate)
The annualized cost of borrowing expressed as a percentage, including interest and mandatory fees, used to compare loan products.
Explore more terms
Early Repayment (Overpayment)
Paying off part or all of a loan ahead of schedule to save on future interest.
Transaction Categorization
The process of classifying financial transactions into categories like groceries, rent, or entertainment to analyze spending patterns.
Recurring Transactions
Transactions that repeat at regular intervals — subscriptions, loan payments, salary deposits — essential for predicting future cash flow.
Bank Synchronization
The automated process of importing transactions from bank accounts into a financial management tool, either through API connections or file imports.
IBAN
International Bank Account Number, a standardized format for identifying bank accounts across borders.
Overdraft
A credit facility that lets you spend more than your account balance, up to an agreed limit, for a fee or interest.