How to Use Loan Calculator 💡
See how monthly payments change based on repayment methods.
1. Enter Loan Amount, Interest Rate, and Term.
2. Select Repayment Method.
3. Compare Monthly Payment and Total Interest to find the best plan.
Repayment Types
- Equal P & I: Monthly payment (Principal + Interest) stays the same. Good for budgeting.
- Equal Principal: Principal payment is constant, interest decreases. Higher initial payments but lower total interest.
- Bullet: Pay only interest monthly, and principal at the end. Low monthly burden but requires a large sum at maturity.
Frequently Asked Questions
What is the difference between equal payment and equal principal repayment?
Equal payment keeps the monthly payment stable. Equal principal repays the same principal amount each month, so early payments are higher but total interest is usually lower.
Will this loan calculator match my bank payment exactly?
The calculator provides an educational estimate from the rate and term you enter. Actual bank payments can differ because of day-count rules, fees, prepayment terms, and variable-rate changes.