Equal payment loan calculator
Equal-payment loan: PMT = P x i x (1+i)^n / ((1+i)^n - 1). 1,000,000 at 5% for 3 years costs 29,970.90 a month and 78,952.30 interest.
Amortization schedule · 36 months
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $29,970.90 | $25,804.23 | $4,166.67 | $974,195.77 |
| 2 | $29,970.90 | $25,911.75 | $4,059.15 | $948,284.02 |
| 3 | $29,970.90 | $26,019.71 | $3,951.18 | $922,264.31 |
| 4 | $29,970.90 | $26,128.13 | $3,842.77 | $896,136.18 |
| 5 | $29,970.90 | $26,237.00 | $3,733.90 | $869,899.18 |
| 6 | $29,970.90 | $26,346.32 | $3,624.58 | $843,552.87 |
| 7 | $29,970.90 | $26,456.09 | $3,514.80 | $817,096.77 |
| 8 | $29,970.90 | $26,566.33 | $3,404.57 | $790,530.44 |
| 9 | $29,970.90 | $26,677.02 | $3,293.88 | $763,853.42 |
| 10 | $29,970.90 | $26,788.17 | $3,182.72 | $737,065.25 |
| 11 | $29,970.90 | $26,899.79 | $3,071.11 | $710,165.46 |
| 12 | $29,970.90 | $27,011.87 | $2,959.02 | $683,153.58 |
| 13 | $29,970.90 | $27,124.42 | $2,846.47 | $656,029.16 |
| 14 | $29,970.90 | $27,237.44 | $2,733.45 | $628,791.72 |
| 15 | $29,970.90 | $27,350.93 | $2,619.97 | $601,440.79 |
| 16 | $29,970.90 | $27,464.89 | $2,506.00 | $573,975.89 |
| 17 | $29,970.90 | $27,579.33 | $2,391.57 | $546,396.56 |
| 18 | $29,970.90 | $27,694.24 | $2,276.65 | $518,702.32 |
| 19 | $29,970.90 | $27,809.64 | $2,161.26 | $490,892.68 |
| 20 | $29,970.90 | $27,925.51 | $2,045.39 | $462,967.17 |
| 21 | $29,970.90 | $28,041.87 | $1,929.03 | $434,925.30 |
| 22 | $29,970.90 | $28,158.71 | $1,812.19 | $406,766.59 |
| 23 | $29,970.90 | $28,276.04 | $1,694.86 | $378,490.56 |
| 24 | $29,970.90 | $28,393.85 | $1,577.04 | $350,096.70 |
| 25 | $29,970.90 | $28,512.16 | $1,458.74 | $321,584.54 |
| 26 | $29,970.90 | $28,630.96 | $1,339.94 | $292,953.58 |
| 27 | $29,970.90 | $28,750.26 | $1,220.64 | $264,203.32 |
| 28 | $29,970.90 | $28,870.05 | $1,100.85 | $235,333.27 |
| 29 | $29,970.90 | $28,990.34 | $980.56 | $206,342.93 |
| 30 | $29,970.90 | $29,111.13 | $859.76 | $177,231.80 |
| 31 | $29,970.90 | $29,232.43 | $738.47 | $147,999.37 |
| 32 | $29,970.90 | $29,354.23 | $616.66 | $118,645.13 |
| 33 | $29,970.90 | $29,476.54 | $494.35 | $89,168.59 |
| 34 | $29,970.90 | $29,599.36 | $371.54 | $59,569.23 |
| 35 | $29,970.90 | $29,722.69 | $248.21 | $29,846.54 |
| 36 | $29,970.90 | $29,846.54 | $124.36 | $0.00 |
Formula estimate only. Rates, taxes, and legal rules vary by jurisdiction.
What to know
Equal payment, called wonrigeum gyundeung in Korea, keeps every instalment identical. The monthly payment is PMT = P x i x (1 + i)^n / ((1 + i)^n - 1), where P is the loan, i = annual rate / 12 and n is the number of months. With a 0 percent rate the page uses P / n.
Worked example: 1,000,000 at 5 percent for 3 years has i = 0.0041667 and n = 36, giving PMT = 29,970.90. The first month pays 4,166.67 of interest and 25,804.23 of principal, and the total repaid is 1,078,952.30, which means 78,952.30 of interest.
The payment stays flat, but its mix shifts every month: early instalments are mostly interest, and later ones mostly principal. On a 300,000,000 loan at 4 percent for 30 years the payment is 1,432,245.89 and the interest over the term reaches 215,608,519.10, more than the loan itself.
An extra monthly payment is added to principal on top of the scheduled amount. On the 1,000,000 example, 100,000 extra a month clears the loan in 8 months instead of 36, cuts the interest to 18,533.22 and saves 60,419.07.
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How to use Equal payment loan calculator
- Enter Principal / amount 1,000,000 and Annual rate 5.
- Set Years to 3.
- Read Monthly payment, which shows 29,970.90, and Total interest of 78,952.30.
- Type 100,000 in Extra monthly payment to see 8 months and 60,419.07 of interest saved.
Quick answers
How is the first-month interest calculated?
Principal x annual rate / 12. For 1,000,000 at 5 percent that is 1,000,000 x 0.05 / 12 = 4,166.67.
What is the payment on 300,000,000 at 4 percent over 30 years?
About 1,432,245.89 a month, with 215,608,519.10 of total interest over 360 months.
Why does the balance fall slowly at first?
Because the same payment must cover the interest on a large balance, only a small part reduces principal at the start.