Equal-Payment Versus Equal-Principal Loans

Hold principal, rate and term constant to compare level total payments with level principal repayments. Equal principal can start with a larger bill because its interest decreases as the balance falls.

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How to use this tool

Enter KRW principal, years and annual percentage. Keep those inputs fixed when changing repayment method to isolate the effect of the repayment structure.

Results and examples

The equal-principal headline is the first instalment. Only the first twelve rows are shown, but total interest covers the full term, so summing visible rows will not necessarily reproduce it.

Worked example

KRW 12 million over one year at 0% gives KRW 1 million monthly with either method.

Limitations

Daily accrual, prepayment, variable rates and fees are excluded.
Actual payment dates and bank rounding may differ.

Fields

Field	Guidance and constraints
Loan amount (KRW)	Check the unit and format displayed beside this field.
Term (years)	Check the unit and format displayed beside this field.
Annual interest rate (%)	Check the unit and format displayed beside this field.
Equal principal and interest	Check the unit and format displayed beside this field.
Equal principal	Check the unit and format displayed beside this field.