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Annuity vs equal principal

Mortgage calculator

Compare annuity and equal-principal repayment, see the amortization table and how much you'd save by paying extra.

Banks sometimes apply a different rate for each repayment method — you can enter them separately.
Exceeds the contractual payment, so the loan is paid off faster.

Annuity

Payment—
Total interest—
Duration—
Saved (extra payment)—

Equal principal

1st / last payment—
Total interest—
Duration—
Saved (extra payment)—
Annuity — by year (click row for months)
YearPrincipalInterestBalanceRatio
Equal principal — by year
YearPrincipalInterestBalanceRatio
Difference

Annuity vs equal principal

Annuity — the payment stays the same throughout; you pay more interest and less principal at the start (easier on the budget early on, but you pay more interest in total). Equal principal — the principal portion is fixed, the payment is higher at the start and decreases every month (harder at first, but you pay less interest in total).

Indicative calculation (fixed annual rate for the whole term, excluding insurance/administration fees) — your bank's actual offer may differ. Not financial advice.

Frequently asked questions

FAQ

Which repayment method is cheaper?

With equal principal you pay less interest in total, because the loan balance decreases faster in the early years. However, the initial payment is higher than with the annuity method.

How much will I save by paying extra?

Every extra euro directly reduces the loan balance that interest is calculated on — even a small extra payment over a long term can save thousands of euros in interest and shorten the loan term.

Does the calculator account for insurance and other fees?

No, the calculator shows only the principal and interest portion of the loan. A bank's offer may additionally include property insurance, administration fees, etc.

Planning to buy a business asset with a loan?

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