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Calculate your loan repayment plan and interest. You can compare amortization, equal principal payment, and bullet payment methods.
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Comparison of Loan Repayment Methods
Amortization
A method of repaying the same amount (principal + interest) each month. The interest portion is higher in the beginning and the principal portion increases over time. Total interest paid is higher than equal principal payment, but consistent monthly payments make financial planning easier.
Equal Principal Payment
A method of repaying equal principal and interest on the remaining principal each month. The initial repayment amount is large and gradually decreases. Total interest paid is less than amortization, but the initial repayment burden is higher.
Bullet Payment
A method of paying only interest during the loan period and repaying the principal in one lump sum at maturity. Monthly payment burden is low, but total interest burden is the highest and a large amount of funds is needed at maturity.