Equal payment vs equal principal
Compare two repayment methods under the same loan amount, term and rate.
Loan details
ComparisonResults
MethodsEqual payment
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Equal principal
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Interest saved
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| Method | First payment | Last payment | Total interest | Total repayment |
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Frequently asked questions
FAQWhat is equal payment?
Equal payment keeps the monthly amount stable under a standard amortization formula.
What is equal principal?
Equal principal repays the same amount of principal each month, so the monthly payment generally declines over time.
Which method has lower total interest?
Equal principal usually has lower total interest, but it starts with a higher monthly payment.