Flat vs Reducing Rate Calculator
Compare flat rate and reducing balance rate for loans. Understand the real cost difference and find the equivalent reducing rate for a given flat rate.
13.0Kuses
8.9/10(34)
You save with Flat Rate
₹743
Flat Rate (10%) CHEAPER
Monthly EMI₹18,056
Total Interest₹1,50,000
Total Payment₹6,50,000
Reducing Rate (18%)
Monthly EMI₹18,076
Total Interest₹1,50,743
Total Payment₹6,50,743
Approximate: 10% flat rate is roughly equivalent to ~18.0% reducing rate
Flat Rate vs Reducing Rate
Flat rate charges interest on the original principal throughout the loan. Reducing balance charges interest only on the outstanding balance. A 10% flat rate is roughly equivalent to 18% reducing rate.
- Side-by-side EMI comparison
- Total interest and total payment comparison
- Shows which option saves more money
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Disclaimer: This tool is provided as-is for informational and educational purposes only.