Question 1

Equal installment vs equal principal?

Accepted Answer

Equal installment keeps the monthly payment fixed with higher total interest; equal principal repays fixed principal plus interest, so payments shrink over time with lower total interest. This tool uses equal installment.

Question 2

What happens at 0% interest?

Accepted Answer

It is treated as a zero-rate loan: payment = principal ÷ number of payments, with no interest. A valid edge case, computed exactly.

Question 3

Will results match my bank exactly?

Accepted Answer

The formula matches, but actual loans may differ slightly due to rate adjustments, disbursement dates or fees. Results are for reference.