Loan Calculator
Calculate your monthly loan payment, total interest, and view a complete amortization schedule.
About This Tool
The Loan Calculator computes your monthly repayment amount, total interest, and full amortization schedule for any type of loan. It supports three Korean repayment methods: equal principal and interest (원리금균등), equal principal (원금균등), and bullet repayment (만기일시). Compare methods side by side to find the best option.
How to Use
- Enter the total loan amount you want to borrow.
- Enter the annual interest rate (e.g., 5.5 for 5.5%).
- Enter the loan term in years.
- Click Calculate to see your monthly payment and total costs.
- Click 'Show Amortization Schedule' to see the month-by-month breakdown.
Frequently Asked Questions
How is the monthly payment calculated?
Monthly payments are calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. This formula ensures equal monthly payments throughout the loan term.
What is an amortization schedule?
An amortization schedule shows how each monthly payment is split between principal and interest over the life of the loan. Early payments are mostly interest, while later payments are mostly principal. This schedule helps you understand how your loan balance decreases over time.
How does a shorter loan term affect my payments?
A shorter loan term means higher monthly payments but significantly less total interest paid. For example, a $200,000 loan at 6% costs $1,199/month over 30 years ($231,677 total interest) vs. $1,688/month over 15 years ($103,788 total interest) — saving over $127,000.
Does this calculator work for all types of loans?
This calculator works for fixed-rate loans including personal loans, auto loans, student loans, and fixed-rate mortgages. It does not account for variable rates, adjustable-rate mortgages (ARMs), or loans with balloon payments.
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How It's Calculated
Three repayment methods are calculated:
1. Equal Principal & Interest (원리금균등): M = P × [r(1+r)^n] / [(1+r)^n − 1]. Monthly payment stays constant.
2. Equal Principal (원금균등): Principal portion = P/n (constant). Interest = Remaining Balance × r. Monthly payment decreases over time.
3. Bullet Repayment (만기일시): Monthly payment = P × r (interest only). Principal repaid in full at maturity.
Where P = loan amount, r = monthly rate, n = total months. The calculator generates a month-by-month breakdown showing principal, interest, and remaining balance for each method.
⚠️ Disclaimer
Calculated amounts are based on the interest rate and term you enter. Actual loan terms include origination fees, late payment penalties, and variable rate adjustments not reflected here. Contact your financial institution for official repayment schedules.
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