A repayment schedule (also called an amortization schedule) is a complete table showing every payment you need to make on a loan — when each payment is due, how much goes toward principal, how much goes toward interest, and your remaining balance after each payment.
Here is the key insight: in the early years of a loan, most of your payment goes toward interest. On a 30-year, $300,000 mortgage at 7%, your first payment of $1,996 includes $1,750 in interest and only $246 in principal. By year 25, that flips — more goes toward principal.
Understanding your repayment schedule helps you make smarter financial decisions. Making extra payments toward principal early in the loan can save you tens of thousands in interest. For example, paying just $200 extra per month on that $300,000 mortgage saves roughly $80,000 in interest and pays off the loan 7 years early.