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Loan Calculator

Calculate monthly payments and total interest for equal installment and equal principal repayment

Loan Amount ($)
Annual Rate (%)
Term (Years)

Repayment Formula

Equal Installment: Monthly = P×r×(1+r)^n / [(1+r)^n-1]
Equal Principal: Monthly = P/n + (P-repaid)×r
r = annual rate/12, n = years×12

Choosing the right repayment method can save thousands in interest.

⚠ Rate is annual percentage (%). Term in years. Results for reference only; actual terms per bank contract.

Equal Installment vs Equal Principal

Equal installment: fixed monthly payment, front-loaded interest, easier budgeting, higher total interest. Equal principal: decreasing payments, higher early burden, lower total interest.

Equal Installment

Fixed monthly payment, interest-heavy early on. Best for stable income earners. Higher total interest.

Equal Principal

Fixed principal portion, decreasing interest. Higher early payments, lower total interest.

Interest Calculation

Monthly interest = remaining principal × monthly rate. Equal installment pays down principal slower, hence more total interest.

Early Repayment

Equal installment pays interest first, so later prepayment saves less. Equal principal benefits from prepayment at any time.

Teaching Example: $1M loan at 4.2% for 30 years. Monthly rate=4.2%/12=0.35%. Equal installment: ~$4,886/month, total interest ~$759K. Equal principal: first month ~$6,286, gradually decreasing.

Applications

Mortgage Planning Auto Loan Consumer Credit Business Loan Financial Planning

Frequently Asked Questions

Equal installment vs equal principal?▼
Equal installment: fixed payment, front-loaded interest, higher total. Equal principal: decreasing payment, lower total interest.
How to calculate equal installment payment?▼
Monthly = [P×r×(1+r)^n]/[(1+r)^n-1], r=annual/12. Example: $1M at 4.2% 30yr ≈ $4,886/month.
Is early repayment worth it?▼
Depends on remaining term, penalties, and opportunity cost. Equal installment: first 5 years is most impactful.
LPR vs fixed rate?▼
LPR floats monthly; fixed stays constant. LPR benefits from falling rates but risks rising payments. Most new mortgages use LPR.

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