Loan Interest Calculator
Compare 3 repayment methods
Enter amount in dollars
Loan Interest Calculator
The Loan Interest Calculator automatically computes monthly payments and total interest based on your loan amount, interest rate, and term.
3 Repayment Methods Compared
- Equal Payment (Amortized) - Same monthly payment throughout. Interest portion is higher at the start, principal portion grows over time. The most common method.
- Equal Principal - Same principal each month + interest on remaining balance. Higher initial payments but less total interest.
- Bullet (Interest-Only) - Pay only interest monthly, repay all principal at maturity. Lowest monthly burden but highest total interest.
Which method is best?
- Lowest total interest: Equal Principal
- Consistent monthly payments: Equal Payment
- Lowest monthly burden: Bullet (but highest total interest)
FAQ
Q. Are there early repayment penalties?
Most lenders charge a prepayment penalty (typically 1-2%) if you pay off the loan within the first 3 years. After that, it is usually waived.
Q. Fixed rate vs. variable rate?
If rates are expected to drop, variable rate may be better. If rates are expected to rise, fixed rate provides more certainty.