Mortgage Calculator — Equal Payment vs Principal vs Bullet
Enter loan amount, interest rate, and term to compare three repayment methods: equal payment, equal principal, and bullet. See monthly payment, total interest, total payment, and a repayment schedule chart — free.
This calculator is for reference only and may differ from actual amounts due to law changes or individual circumstances. Please consult a licensed professional (tax accountant, labor attorney, etc.) for accurate calculations.
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Frequently Asked Questions
Q. What is the difference between equal payment and equal principal?
Equal payment keeps monthly payments constant (more interest early, more principal later). Equal principal keeps the monthly principal constant, resulting in higher initial payments but lower total interest.
Q. When is a bullet (interest-only) loan beneficial?
Bullet loans suit those planning to repay early or who need short-term cash flow flexibility. However, they carry the highest total interest cost.
Q. Where can I find current mortgage rates in Korea?
Check the Korean Federation of Banks consumer portal (portal.kfb.or.kr) for bank-by-bank rate comparisons. Typical home loan rates range from 3–5%.
Q. What is DTI (Debt-to-Income) ratio?
DTI = (Annual debt repayment ÷ Annual income) × 100. Korea's DSR regulation generally caps this at 40% for new mortgages.
Q. What is a grace period?
A grace period is when you pay interest only without repaying principal. After the grace period, principal repayments begin, increasing monthly payments.
Q. What happens to interest when I prepay?
You pay interest only on the remaining principal. Note that some banks charge an early repayment fee (typically 1–2%).
Q. Can I use this for actual loan applications?
This is a reference calculator. Actual loan rates and terms vary by institution — confirm conditions directly with your bank.
How to Use
Input loan amount (KRW), annual interest rate (%), and term (years).
Choose equal payment, equal principal, or bullet repayment.
Instantly see monthly payment, total interest, and total repayment.
Review the 3-type comparison table and monthly repayment schedule chart.
Expert Knowledge: Mortgage Calculator — Equal Payment vs Principal vs Bullet
The right mortgage repayment type depends on your income profile and financial goals. Equal payment offers predictable monthly costs, ideal for budget-conscious borrowers with stable income. Total interest is higher than equal principal but payments are constant over the entire term.
Equal principal reduces monthly payments over time and minimizes total interest. It suits borrowers with strong initial income who want to pay down principal faster. Bullet (interest-only) loans keep monthly costs minimal but require a large lump sum at maturity — appropriate only if you have a clear exit strategy such as selling the property.
Under Korea's 2026 DSR (Debt Service Ratio) regulation, all debt repayments cannot exceed 40% of annual income. Factor all existing loans into your DSR calculation before taking out a new mortgage.
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