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Equal Principal & Interest Payment Calculator
Equal principal and interest repayment pays a fixed amount of principal plus interest each...
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Equal principal repayment pays a fixed principal amount each month plus the interest accru...
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Two loans with the same amount, rate and term can cost different totals, because the repayment structure decides how quickly the balance falls. Equal-payment keeps the instalment flat and front-loads interest; equal-principal clears capital faster and pays less interest overall.
Equal-payment is easier to budget for, which is why most mortgages use it. Equal-principal costs less and starts with a higher instalment that decreases every month. Comparing the two on the same numbers is the quickest way to see what the flexibility is worth.
Frequently Asked Questions
How much interest does equal-principal save?
On 300,000 at 5 % over 20 years, roughly 15–20 % of the total interest, because the average balance is lower for the whole term.
Which loan should I choose if the rate may fall?
Equal-payment benefits more from falling rates, since refinancing resets a flat instalment. Equal-principal already assumes you can afford a front-loaded payment.
Are fees and insurance included?
No. Add arrangement fees to the principal and any insurance premium to the monthly cost before comparing, otherwise the cheaper loan can look more expensive than it is.
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Sources & last update
2026-10-19