Loan Calculator

Equal Payment (Fixed Monthly Payment): You pay the same amount every month.
- Formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]
- Pros: Predictable, consistent monthly budget
- Cons: More interest paid upfront; principal payoff is slow early on

Equal Principal: You repay the same principal each month; interest decreases over time.
- Pros: Lower total interest paid overall
- Cons: Higher initial payments; front-loaded cash flow burden

For long-term loans, equal principal generally saves more in total interest.

Reading your result
- Check total interest ÷ principal. For a 30-year loan, total interest of 50–80% of principal is typical; if that feels heavy, compare a shorter term.
- A 0.5%p rate difference looks small but changes total interest by tens of thousands of dollars on a large 30-year mortgage — worth comparing against refinancing fees.
- Early repayment: with equal payments, early-year installments are mostly interest. Extra payments made early in the term save the most, since they eliminate all future interest on the repaid principal.