Financial Tool

Equal Principal Amortization

Calculate a loan schedule where the principal portion of each payment remains constant.

Loan Amount ($)

Interest Rate (%)

Term (Years)

Σ The Formula

Monthly Payment = (P / n) + (Balance × r)

Real World Examples

Business Loan

$12,000 for 1 year at 6%. Payments start at $1,060 and decrease to $1,005.

Equipment Finance

$50,000 for 5 years at 4%. Principal is always $833.33/mo.

# About This Calculator

An Equal Principal Amortization (also known as a straight-line principal loan) is a type of repayment schedule where the amount applied to the principal remains constant throughout the loan term.

This differs from the standard "Equal Payment" (French amortization) model, where the total monthly payment is fixed. In an equal principal loan, your total monthly payment will decrease over time. This is because the interest portion—calculated on a shrinking balance—gets smaller every month, while the principal portion stays the same.

Advantage: You pay less total interest over the life of the loan compared to a standard payment plan, as you pay down the debt faster in the early stages.

How To Use

Enter the **Loan Amount**.
Enter the **Annual Interest Rate**.
Enter the **Loan Term** in years.
Observe how the total payment amount drops from month to month.

Frequently Asked Questions

How is this different from a normal mortgage?+

In a normal mortgage, your payment is fixed (e.g., exactly $1,500 every month). With equal principal, your first payment might be $1,800 and your last might be $1,200, though the principal share stays constant.

Who uses equal principal loans?+

They are common in commercial lending, business equipment financing, and some government-backed loans where paying off the debt quickly is a priority.

Is Equal Principal Amortization free to use?+

Yes, Equal Principal Amortization on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is Equal Principal Amortization?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for Equal Principal Amortization are accurate for academic and professional use.

Can I use Equal Principal Amortization on my phone?+

Yes! Equal Principal Amortization is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

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