What is the difference between equal payment and equal principal?

Equal payment (amortizing) keeps your monthly budget predictable with the same payment amount. Equal principal starts higher but decreases over time, resulting in the lowest total interest paid.

Should I choose a grace period for my loan?

A grace period allows you to pay only interest at the start, reducing early financial burden. However, it increases the total interest paid over the life of the loan.

Which repayment method is most cost-effective?

Equal principal repayment is the most cost-effective as it reduces the principal balance faster, thus minimizing total interest expense compared to other methods.

Loan Calculator

Compare monthly payments by repayment method
and find the best loan plan for you.

Last Modified: Feb 2026 Verified by Financial Experts

Which loan repayment method is better?

Choose Equal Principal if you want to minimize total interest paid. Choose Equal Payment (Amortization) if you prefer a fixed monthly budget. Most bank loans use Equal Payment for convenience, but the total interest is slightly higher than Equal Principal.