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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₩970,000,000 Loan Interest (4% / 30yr) - Toolkit

For a ₩970,000,000 loan at 4% over 30 years (equal payment), the monthly payment is about ₩4,630,928 and total interest about ₩697,134,080.

2026Equal-payment (amortizing) formula

Loan principal

Annual rate (%)

Loan term (months)

Grace period (months, optional)

Monthly payment (first month)4,630,928

Total payments1,667,134,080

Total interest697,134,080

Interest calculationShow steps

Total interest697,134,080

Total payments − principal

= 1,667,134,080 − 970,000,000

Repayment schedule (first 12 payments)

No.	Payment	Principal	Interest	Balance
1	4,630,928	1,397,595	3,233,333	968,602,405
2	4,630,928	1,402,253	3,228,675	967,200,152
3	4,630,928	1,406,927	3,224,001	965,793,225
4	4,630,928	1,411,617	3,219,311	964,381,608
5	4,630,928	1,416,323	3,214,605	962,965,285
6	4,630,928	1,421,044	3,209,884	961,544,241
7	4,630,928	1,425,781	3,205,147	960,118,460
8	4,630,928	1,430,533	3,200,395	958,687,927
9	4,630,928	1,435,302	3,195,626	957,252,625
10	4,630,928	1,440,086	3,190,842	955,812,539
11	4,630,928	1,444,886	3,186,042	954,367,653
12	4,630,928	1,449,702	3,181,226	952,917,951

Showing only the first 12 payments of the full term.

How it's calculated & notes

·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 increases total interest.
·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 ₩970,000,000 Loan

Borrowing ₩970,000,000 at 4% for 30 years (equal payment) gives a monthly payment of about ₩4,630,928, total interest of about ₩697,134,080, and total repayment of about ₩1,667,134,080.

Repayment summary

Monthly payment: ₩4,630,928
Total interest: ₩697,134,080
Total repayment: ₩1,667,134,080

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 {rate}% over {years} 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