📊 Loan Comparison Calculator
Compare fixed payment vs fixed principal repayment methods
Compare fixed payment vs fixed principal repayment methods
This calculator lets you directly compare the total interest and monthly payment differences between fixed payment (equal installment) and declining payment (equal principal) methods, helping you choose the most suitable repayment approach.
Fixed payment: Monthly payment stays the same, interest is front-loaded, total interest is higher Declining payment: Monthly payment decreases over time, initial payments are higher, total interest is lower
Key difference: Declining payment saves more interest, but requires higher initial payments.
Selection guide:
Choose fixed payment if: - Your income is moderate and you want predictable payments - You expect your income to grow over time - You have other investment opportunities with returns above the rate difference
Choose declining payment if: - Your income is higher and early payments are comfortable - You want to minimize total interest paid - You plan to make early repayments
Data comparison ($200,000 loan / 30 years / 5% rate): - Fixed payment: $1,074/month, total interest ~$186,512 - Declining payment: First month $1,389, total interest ~$150,667 - Declining payment saves ~$35,845 in interest