Loan Calculator
See your monthly payment, total interest, and the full schedule.
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How it is calculated
Equal payment (amortizing) keeps every monthly payment the same. Early payments are mostly interest; later ones are mostly principal. Because the amount never changes, it is the easiest to budget around, which is why most mortgages use it.
Equal principal repays the same amount of principal each month and charges interest on the remaining balance. The first payment is the largest and payments shrink over time. Total interest is lower than equal payment because the balance falls faster. Worth choosing if you can absorb the early cost.
Interest only pays nothing but interest until maturity, when the whole principal comes due. Monthly cost is lowest, but since the balance never shrinks, total interest is the highest of the three. Only sensible when you are certain the lump sum will be there at the end.
Stretching the term lowers the monthly payment but raises total interest. Between a 20-year and a 30-year term at the same rate, the monthly difference is often smaller than people expect, and the interest difference is larger. Look at both numbers before deciding.
Frequently asked questions
Which method costs less?
Equal principal costs less in total interest, but its early payments are higher. Choose it only if the first year of payments fits your budget. If a predictable, unchanging payment matters more, equal payment is the better fit.
Are prepayment penalties included?
No. Prepayment penalties are usually a percentage of the amount repaid early and often decline over the life of the loan, and terms vary too much between lenders to generalise. Check your loan agreement.
What about an interest-only grace period?
During a grace period you pay interest only and the balance stays put. To approximate it, run the calculation again using the term that remains after the grace period ends. This calculator does not model grace periods.
How do I handle a variable rate?
This calculator assumes the rate holds for the whole term. With a variable rate, run it once at the current rate and once at the highest rate you might face, and plan against both numbers.
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This is an estimate based only on principal, rate and term. It excludes origination fees, taxes, prepayment penalties, grace periods, rate changes and day-count conventions. Check your lender’s agreement for actual figures.