Installment Calculator
Calculate installment payments with flat, reducing balance, or add-on interest methods
Interest calculated on remaining balance each period. Most common and favorable for borrowers. Lower total interest.
Purchase Details
Loan Terms
Total of 24 payments over 2.0 years
Additional Options
Enable to add processing fees, late fees, and grace period
How It Works
Reducing Balance: Interest calculated on remaining balance. Best for borrowers.
Flat Rate: Interest on original amount. Simple but costs more.
Add-On: Interest added upfront. Common in retail financing.
$941.47
Every monthly for 24 payments
$27,845.27
$2,595.27
Key Metrics
Financed Amount
$20,000.00
Effective APR
12.00%
Total Fees
$250.00
First Payment Date
Mar 18, 2026
Payment Breakdown
Early Payoff
Enable to calculate savings from early payoff
Payment Schedule
First Payment
Mar 18, 2026
Total Payments
24
Last Payment
Feb 6, 2028
Method Comparison
reducing
$941.47
$2,595.27 interest
flat
$1,033.33
$4,800.00 interest
addon
$1,033.33
$4,800.00 interest
Payment comparison for same terms
Understanding Interest Methods
Reducing Balance
Interest calculated on remaining balance each period. Most favorable for borrowers. Commonly used in mortgages, car loans, and personal loans.
Flat Rate
Interest calculated on original principal for entire term. Simple to understand but costs more. Common in some personal loans and short-term financing.
Add-On Interest
Simple interest added to principal upfront, then divided. Common in retail financing, appliance purchases, and some credit card promotions.