Loan Calculator — Colombia
A $100,000 loan at 12% annual rate for 36 months has a fixed monthly payment of $3,321.43 using the French method, paying $19,571.55 in total interest. With the German method, the first payment is $3,777.78 but decreases each month. This calculator lets you compare both methods and see the full amortization schedule.
Frequently Asked Questions
What is the difference between French and German amortization?
In French amortization (the most common), you pay a fixed installment each month: at first almost all goes to interest, but gradually you pay more principal. In German amortization, the principal portion is fixed each month and interest decreases, so the total payment drops over time. French is more predictable; German saves more interest overall.
Does the interest rate include fees?
No. The rate you enter here is the nominal annual rate. The Annual Percentage Rate (APR) includes origination fees, insurance, and other charges. Check your lender's APR for a more complete comparison.
Can I pay off my loan early?
In most countries, yes. In Mexico, consumer protection law allows early payoff without penalty. In Spain, you can prepay with a maximum fee of 1% (variable rate) or 2% (fixed rate). In the US, most personal loans don't have prepayment penalties, but check your contract terms.
How do I choose the best term for my loan?
Shorter terms mean higher payments but less total interest. Longer terms reduce monthly payments but you pay much more interest overall. A general rule is that your payment shouldn't exceed 30-35% of your monthly income. Use this calculator to compare different terms.
Is a fixed or variable rate better?
A fixed rate offers stability: your payment never changes. Variable rates usually start lower but can rise if reference rates increase. For short loans (1-3 years), variable may be advantageous. For longer terms, fixed offers more security.