๐ฆ Loan Calculator
Enter your loan details and compare interest across different repayment methods.
๐ฆ Loan Details
$1,896
$382.8K
$682.8K
Monthly Principal vs Interest
Repayment Methods Compared
Equal Payment (Amortized)
Pay the same fixed amount every month. Early payments are mostly interest; over time, more goes to principal. The most common mortgage and personal loan method.
Equal Principal
Pay the same amount of principal each month plus decreasing interest. Higher initial payments, but lowest total interest over the life of the loan.
Interest Only (Bullet)
Pay only interest each month and repay the entire principal at maturity. Lowest monthly burden but highest total interest.
Loan Payment Formulas
Amortized Monthly Payment = P ร r ร (1+r)โฟ รท ((1+r)โฟ โ 1)
Equal Principal Monthly Payment = (P รท n) + (Remaining Balance ร r)
Where P = principal, r = monthly rate (annual rate รท 12), n = total months.
Frequently Asked Questions
Which repayment method saves the most money?
Equal principal repayment results in the lowest total interest because you pay down the principal faster. However, amortized payments are more predictable and easier to budget for.
What is a grace period?
During the grace period, you pay only interest without repaying principal. After the grace period ends, you begin repaying both. This lowers initial burden but increases total interest paid.
Does prepayment reduce interest?
Yes, making extra principal payments reduces the remaining balance, which in turn reduces future interest charges. Check your loan terms for any prepayment penalties.