While monthly payments are useful for managing your immediate schedule, they cannot replace the total cost. If the payment period is extended or the cost varies by installment, you may overlook the total burden by focusing only on the small monthly amount. This is why we include both a monthly table and a total cost table.
Check before multip the representative amount by the period
First, check if the amounts for all installments are the same. Simple multiplication may not be correct if there are separate costs in the first month or adjustment amounts in the last installment. Sum each row of the actual schedule and verify the result by dividing the total principal by the total cost.
The total amount is verified using the records for each round.
The payment record sheet is divided into installment number, scheduled date, principal, additional costs, scheduled total, actual payment amount, and payment confirmation date. During the planning stage, the scheduled amounts are totaled, and after payment, they are compared against the actual amounts. To minimize totaling errors, you must first verify whether items already include costs within the principal. If the amounts for the first or last installment differ, it is difficult to determine the accurate total amount using only the method of multip the representative monthly payment by the number of months.
For illustrative purposes, assuming the principal of 600,000 won is divided into three installments with separate costs of 3,000 won, 2,000 won, and 1,000 won respectively, the amounts for each installment are 203,000 won, 202,000 won, and 201,000 won, and the total is 606,000 won. This is not a rate table for a specific card. In actual calculations, use the billing amounts per installment provided by the card company, and if changes or cancellations are reflected, do not delete the existing schedule but record the modification date.
Example of reading two payment plans
For illustrative purposes, comparing 6 installments of 100,000 won with 11 installments of 60,000 won, the monthly amount is smaller for the latter, but the totals are 600,000 won and 660,000 won, respectively. This example only shows the difference in calculation. Under actual conditions, you must verify the included costs and dates and transfer them to your cash flow statement.
Display monthly amount and total sum together
The following is an arithmetic example illustrating the differences that can arise when comparing based solely on monthly amounts. This table is not intended to determine the advantages or disadvantages of an actual payment plan. You must verify the inclusion of principal and costs, differences by installment, and the schedule before app it to your personal budget.
| example | Amount per round | Total |
|---|---|---|
| A | 100,000 won × 6 times | 600,000 won |
| B | 60,000 won × 11 times | 660,000 won |
| Difference to check | B's monthly amount is small | The sum of B is large |
Checklist to check yourself
- Total number of episodes
- Differences by episode
- Total principal
- Total cost
- Payable balance by date
Frequently Asked Questions
When is it wrong to multiply the monthly amount by the number of months?
This applies when the first or last installment differs, or when adjustments are made in the middle. If you do not verify that the representative amount covers all installments, omissions will occur. Sum up each installment in the actual schedule and separately check whether the total of principal and costs matches the original amount.
When looking further into this topic 월 납부액과 총상환액 확인 You may also refer to the following. Read the content based on the questions summarized above, and record the actual amounts or applicable conditions by comparing them with the original data of the relevant transaction. The linked page is in Korean.
