# Fixed Principal Payment Loan Calculator

#### Info...

Click, copy, paste this URL to save the inputs for yourself or to share with others.

This custom URL updates when you click the "Calc", "Clear" or "Schedule" buttons. Paste it into a browser's address bar to reload.

## Fixed principal payment calculator help...

A fixed principal payment loan has a declining payment amount. That is, unlike a typical loan, which has a level periodic payment amount, the principal portion of the payment is the same payment to payment, and the interest portion of the payment is less each period due to the declining principal balance. Thus the payment amount declines from one period to the next. Ultimately, the borrower will pay less in interest charges with this loan method.

This calculator will solve for any one of four possible unknowns: "Amount of Loan," "Number of Payments" (term), "Annual Interest Rate" or the "Periodic Payment."

Enter a '0' (zero) for one unknown value.

The term (duration) of the loan is a function of the "Number of Payments" and the "Payment Frequency." If the loan is calling for monthly payments and the term is four years, then enter 48 for the "Number of Payments." If the payments are made quarterly, and the term is ten years, then enter 40 for the "Number of Payments."

Normally you would set the "Payment Method" to "Arrears" for a loan. Arrears means that the monies are lent on one day, and the first payment isn't due until one period after the funds are received.

If the first payment is due on the day the funds are available, then set "Payment Method" to "Advance." This is typical for leases.

## Mike says:

I cannot get a 3/1/2016 loan date for the Fixed Principal Payment Loan Calculator. How is this done?

## Karl says:

Correct, with this calculator, the user cannot set the dates. However, please use this

amortization schedule.Under the “Amortization Method” option, you’ll see fixed principal.

And with this calculator you can set the loan and first payment date to be whatever you want them to be.

## James says:

I want to make the same payment monthly for principal and interest and let the additional interest help pay down principal. IE $1000 toward principal $500 toward interest. Interest recalculates automatically though as the principal reduces. Can I change that?

## Karl says:

Not a problem. However, you will not want to use this calculator. Rather use the amortization calculator. And, instead of having the calculator calculate a payment amount, enter the payment amount that you want to make. Click the schedule button. The payment will pay the interest and the rest will pay down principal. If the payment you enter, is not enough to pay the interest, then you’ll see negative amortization.

## Anjan Ku sahu says:

Pls give me a even principal pay ment schedule having term loan 1500000 rate of interest 13.10 tenure 60 months starting from july1 2016, even

principal 25000fixed,l oan date22/06/2016 pay ment starts from 01/07/2016

## Karl says:

Please use this time value of money calculator to do what you want.

Scroll down the page and look for this tutorial:

21. Calculate PV of Fixed Principal + Interest Loan

Calculate PV of the declining payment amount

Demonstrates the cash flow analytics of this calculator

for instructions.

If you have additional questions, I’m happy to answer them but please do not reply to the email you’ll receive. Rather post your questions on the calculator’s page.

## Huo Veasna says:

Can you tell me, How to download Fixed Principal Payment Loan Calculator for Excel.

## Karl says:

I don’t create Excel calculators. What you can do is use this calculator and from the payment schedule view, you can select the entire schedule and copy and paste it into Excel. If you do that, you may have to use Excel’s “Paste Special” feature and select the paste unformatted option.

## Proyuth Ly says:

Hello,

You said there is free amortization schedule for download for personal use (http://www.pine-grove.com/amortization/free-amortization-schedule.htm) but when clicking on download page, this is what appears: https://financial-calculators.com/downloads, no free version of amortization schedule.

May you advise the correct link to download free version?

Thanks.

Proyuth

## Karl says:

That calculator is no longer available. Please try this free online amortization calculator.

The advantage is it works with all devices and not just Windows computers.

## Proyuth Ly says:

Thank you very much!

## NANA says:

How to calculate when the grace period is 2 years and during that grace period, i only pay the principal.

loan 2,500,000.00

interest 4%

payment monthly

20 years

## Karl says:

This calculator won’t handle that calculation. However, the Ultimate Financial Calculator will.

You’ll initially set the interest rate to 0%. Enter the payment amount you want and it will be applied to principal Than a 3rd entry for the number of unknown payments. If the loan accrues interest from day 1 (which to me wouldn’t really make sense), then you can add the interest due at the end of the principal only payment series as a new loan. You can calculate the amount of interest that has accrued using the Interest Calculator.

If you try the above, and have questions, please post them on that page.

## Mike F. says:

I would just like to say thank you for taking the time to do this for the public. I am a small business owner and this was a great help to me.

## Karl says:

Great to hear. I’m glad that you both found the calculator and found it useful.

Please tell your friends and associates about this site.

## Rishi gupta says:

Can you please draw the repayment schedule for flat interest rate???

loan amount=1000000

Flat interest rate=5%

tenure=60(monthly)

it’s necessary for me..

please draw it ASAP..

## Karl says:

I do not create schedules. I provide people with the tools and the support so they can create schedules any time they need one.

If you have a question about a calculator, please ask.

## Rod Schroeder says:

Hi Karl,

Thank you for assisting so many with this website!

I have the following question – Total Interest, after selecting Calc, does not equal Total Interest Due in Loan Summary section of generated report, after selecting Payment Schedule. Am I misunderstanding this information?

Example:

Loan Amount 300000.00

Number of Payments 240

Annual Interest Rate 4.3000

Payment Amount 0.00

Payment Amount now populates 2325.00

Total Interest now populates 258000.00

Total Principal & Interest now populates 558000.00

In top section (Loan Summary), Total Interest Due 129537.57 and Total All Payments 429537.57

In this example 258000.00 does not equal 129537.57 and 558000.00 does not equal 429537.57.

Thanks,

Rod

## Karl says:

Hi Rod,

You’re welcome. And oh boy, this is so embarrassing. Before I even finished reading your comment, I knew where you were going and what the problem is. I’ll try to have it fixed by early next week. For the record, the schedule is accurate.

If you are interested in the details, here is what’s happening.

In the interest of performance (calculation speed), if a user does not click the "Payment Schedule" button, a schedule is not calculated. The "Total Principal & Interest" reported at the bottom of the calculator is simply the "Number of Payments" times the "Payment Amount". The "Total Interest" is "Total Principal & Interest" less the "Loan Amount". This works perfectly well (within cents of being correct) if the loan has level payments. But obviously it will not work if the payments aren’t level. And of course for fixed principal payment loans, the payment amount is decreasing.

Thanks for taking the time to point this out.

## Karl says:

Hi Rod, I posted a fix for the problem you mentioned with this calculator. Thanks again for taking your time to let me know.

## Lauren Cissell says:

Good morning,

I am looking to calculate payments over a 5 year term, fixed 4.11% interest rate, with monthly interest payments and bi-annual principal payments. Do you have a suggestion as to what calculator may be best in this scenario.

Thank you for your time,

Lauren

## Karl says:

But of course. 🙂

Please see the Ultimate Financial Calculator

I”m assuming that when you say monthly interest only payments and bi-annual principal payments, that there will be 5 interest payment followed by a single principal and interest payment (since you didn’t mentioned a skipped month when principal is paid).

There are a number of tutorials if you scroll down the page that will give you details about how the calculator works. At a high level, you’ll enter on the first row the loan amount. Follow that row with 5 interest only payments and then 1 row with a regular payment. Repeat. If you don’t know the payment amounts then you can enter the first series of interest only payments as an unknown amount and then calculate the amount before entering the principal and interest payment.

The calculator will certainly do what you want. Mostly likely though, you’ll have questions. Feel free to ask them in the comment area on the above linked page.

And good morning too.

## Kim says:

I’m using your Fixed Principal Loan Payment Calculator and wanted to add in periodic extra payments to principle only. Is there a way to do this?

Thanks!

Kim

## Karl says:

There is, but not with this calculator.

Please use the Ultimate Financial Calculator.

Scroll down the page to the tutorials. Tutorial #1 is an overview, and you would benefit from taking a look at it. Tutorial #21 shows how to set up a fixed principal series and tutorials #9 and #10 discuss different extra payment scenarios. Once you’ve tried these, or if something isn’t clear just ask.

## Kim says:

Thanks Karl for the additional information and quick reply!

## Tharu says:

Hi Karl ,

Can you please tell me if there’s any present value calculation formula for fixed principal payment loan . I want to calculate the present value of a outstanding loan amount. Thank you !!

## Karl says:

Hi Tharu,

Yes there is. Please see this financial calculator. Once on the page, scroll down to the list of tutorials. Then check out this one:

I also recommend that everyone read tutorial #1 just to get an overview of the way the calculator works.

Once you’ve looked at those, if you have any questions, just ask.

## Tharu says:

Thanks Karl . That was really helpful ?.

## Karl says:

You’re quite welcome. Glad it was useful. (Please mention this site to your friends and colleagues in that case. 🙂 )

## Shane says:

I have some questions about a loan with a few unknown values.

Initial loan value is $32,000

Finance Charge Flat $10,000

Flat Payment Charge $500.

It appears to be a 7 year loan but this value is not given. How would I calculate the effective interest rate?

## Karl says:

Since the payment is level (doesn’t change) you don’t want to use this calculator. Rather, use this calculator.

FYI, fixed principal payment loans have a declining payment amount.

And you are correct, the term is 7 years. Loan amount (32,000) plus interest (10,000) = 42,000 total payment. 42,000 divided by 500 = 84 monthly payments or 7 years. (I’m including this arithmetic for the benefit of others.)

Enter the above numbers (amount of loan, not the total payment) in the suggested calculator and enter 0 for the interest rate. Click the "Calc" button and the interest rate will be calculated.

I tested this and the rate is 8.0778%.

## Shane says:

Thank you for the reply, I did some math manually and came up with the same answer. This a very useful tool.

## Mahin says:

These calculators are a real help,

I wonder how would this kind of loan details are used to calculate the amortization schedule.

Please advise me on how to do this.

Loan amount is say $. 10,000,000.

I need fix principal payment biannually and diminishing interest rate method.

Interest Rate – 3.58% p.a

Tenure – 15 years inclusive of 2 ½ years grace period to repay capital

Grace Period – 2 ½ years for capital repayment only

Capital Repayment – Bi Annually after the grace period

Interest Payment – Bi Annually (with no grace period)

Kind regards

MB

## Karl says:

Thanks. Glad you are finding these calculators useful.

This calculator isn’t flexible enough to do what you need to do. However, the Ultimate Financial Calculator is.

Please visit the above calculator page and scroll down and review the tutorials, especially #1 to get you started.

I’m not sure what mean by all the terms, but I’m assuming that for the initial 2.5 years, interest is not accruing. If that’s the case, set the initial interest rate to 0% and then after 2.5 years, create a rate change series and set the new interest rate.

For the fixed principal payments you’ll need to set up a special series.

Please ask if you have any questions. It may take a while to become familiar with the way the suggested calculator works, but it is very flexible and you should eventually have no problem creating the schedule that you need.