What changes between the three methods?
The loan calculator uses principal in KRW, a fixed annual rate and a term in months. It divides the annual rate by 12 to estimate monthly interest. The same inputs let you compare repayment structures.
| Method | Principal repayment | Payment pattern |
|---|---|---|
| Equal payments | Grows as the balance falls | Principal plus interest stays approximately level |
| Equal principal | Same principal amount each month | Larger at first, then decreases |
| Interest-only | Principal repaid in the final month | Interest each month, then a large final payment |
Start with a simple calculation you can verify
At 0% annual interest, a 12,000,000 KRW loan repaid over 12 equal-payment months has a 1,000,000 KRW monthly payment and zero interest. Positive rates add interest on the outstanding balance.
The displayed payment schedule is rounded to whole KRW, but calculations retain decimal precision. Summing displayed rounded rows may differ slightly from an unrounded total.
Compare prepayment savings after fees
Use the current outstanding balance and remaining term in the prepayment calculator. Enter the extra payment and your actual estimated prepayment fee. The tool does not infer a lender’s fee schedule.
The default keeps the term and reduces monthly payments. More options can keep payments and estimate a shorter term. Net savings subtract the entered fee from the interest saved. A negative value means the fee exceeds the modeled saving.
Confirm the contract assumptions
These are fixed-rate monthly estimates. Actual contracts may apply daily interest, payment-date adjustments, different rounding, grace periods or changing rates. Compare the schedule with the lender’s calculation.
The tools do not recommend a financial product or assess eligibility. Alternative uses for the money and future investment returns are outside the calculation.
References and editorial basis
- www.consumerfinance.gov — reference 1
Background reference. The actual lender agreement determines your loan terms.
Written with AI assistance using the tools’ actual behavior, calculation assumptions and public references. Institutional requirements can change. Report a content error