Equal payment vs equal principal?

Equal payment keeps the monthly amount constant; equal principal has a higher early payment but lower total interest.

What rate and term does this assume?

This page assumes 4.0% over 30 years (360 months), equal payment. Change the rate and term in the calculator.

Does early repayment reduce interest?

Yes — repaying principal early reduces the remaining interest, though early-repayment fees may apply.

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₩540,000,000 Loan Interest (4% / 30yr) - Toolkit

For a ₩540,000,000 loan at 4% over 30 years (equal payment), the monthly payment is about ₩2,578,043 and total interest about ₩388,095,191.

2026Equal-payment (amortizing) formula

Loan principal

Annual rate (%)

Loan term (months)

Grace period (months, optional)

Monthly payment (first month)2,578,043

Total payments928,095,191

Total interest388,095,191

Interest calculationShow steps

Total interest388,095,191

Total payments − principal

= 928,095,191 − 540,000,000

Repayment schedule (first 12 payments)

No.	Payment	Principal	Interest	Balance
1	2,578,043	778,043	1,800,000	539,221,957
2	2,578,043	780,636	1,797,407	538,441,321
3	2,578,043	783,239	1,794,804	537,658,082
4	2,578,043	785,849	1,792,194	536,872,233
5	2,578,043	788,469	1,789,574	536,083,764
6	2,578,043	791,097	1,786,946	535,292,667
7	2,578,043	793,734	1,784,309	534,498,933
8	2,578,043	796,380	1,781,663	533,702,553
9	2,578,043	799,034	1,779,009	532,903,519
10	2,578,043	801,698	1,776,345	532,101,821
11	2,578,043	804,370	1,773,673	531,297,451
12	2,578,043	807,051	1,770,992	530,490,400

Showing only the first 12 payments of the full term.

How it's calculated & notes

·Payments and interest are rounded to whole units of the displayed currency. The final payment clears the remaining principal and may differ from the regular amount.
·Grace months are included in the total term and capped at one month less than that term. At 0% interest, grace-period payments are zero and principal is repaid over the remaining months.
·With equal-payment repayment the monthly amount stays constant; with equal-principal repayment the principal portion is constant, so interest gradually decreases.
·During the grace period you pay interest only and the principal stays unchanged; after it ends, the principal is repaid over the remaining term. A longer grace period can increase total interest when the rate is positive.
·Actual loans may differ in total interest depending on prepayment fees, variable rates, and day-count conventions.
·This calculator provides an estimate assuming a fixed rate and equal monthly repayment.

Repayment Analysis for a ₩540,000,000 Loan

Borrowing ₩540,000,000 at 4% for 30 years (equal payment) gives a monthly payment of about ₩2,578,043, total interest of about ₩388,095,191, and total repayment of about ₩928,095,191.

Repayment summary

Monthly payment: ₩2,578,043
Total interest: ₩388,095,191
Total repayment: ₩928,095,191

What is the loan interest calculator?

The loan interest calculator computes the monthly payment and total interest from the principal, annual rate, and term. Equal payment keeps the monthly amount constant; equal principal repays a fixed principal each month, with a higher early burden but less total interest. This page assumes 4% over 30 years.

Repayment methods

Equal payment: same monthly amount
Equal principal: same principal, declining interest
Rate and term greatly affect total interest

View the full loan interest table →

Frequently Asked Questions

Equal payment vs equal principal?: Equal payment keeps the monthly amount constant; equal principal has a higher early payment but lower total interest.
What rate and term does this assume?: This page assumes 4.0% over 30 years (360 months), equal payment. Change the rate and term in the calculator.
Does early repayment reduce interest?: Yes — repaying principal early reduces the remaining interest, though early-repayment fees may apply.

Last updated: July 2026 · Sources: 한국은행