Kamatrész

Kamatrész refers to the interest component of a loan repayment. When a borrower makes a payment on a loan, each installment typically consists of both principal and interest. The kamatrész is the portion of that payment that goes towards reducing the accumulated interest owed. Initially, a larger portion of each payment is allocated to kamatrész, as the outstanding principal balance is higher. Over time, as the principal is gradually paid down, the amount of kamatrész in each subsequent payment decreases, while the principal repayment portion increases. This gradual shift in the payment allocation is a fundamental characteristic of amortizing loans, such as mortgages or car loans. The exact proportion of kamatrész in each payment is determined by the loan's interest rate, the loan term, and the payment schedule. Lenders calculate this based on amortization schedules, which detail how each payment is divided between principal and interest over the life of the loan. Understanding the kamatrész is important for borrowers to comprehend the total cost of borrowing and how their payments contribute to reducing their overall debt.