Question 1

What is the difference between equal principal+interest and equal principal repayment?

Accepted Answer

Equal principal+interest (annuity) means you pay the same total amount each month, with the interest portion decreasing over time. Equal principal means the principal portion is fixed each month, so early payments are higher but total interest is lower.

Question 2

What is bullet repayment?

Accepted Answer

Bullet repayment (or interest-only) means you pay only the interest each month and repay the entire principal at the end of the loan term. This results in the highest total interest cost.

Question 3

How accurate is this calculator?

Accepted Answer

This calculator provides estimates based on standard amortization formulas. Actual payments may vary depending on your lender, fees, exact payment dates, and whether interest is compounded daily or monthly.

Question 4

Which repayment method should I choose?

Accepted Answer

Equal principal+interest provides predictable payments. Equal principal saves on total interest but has higher initial payments. Bullet repayment has the lowest monthly payments but the highest total cost. Choose based on your cash flow and financial goals.

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