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.
Flat Rate (10%) CHEAPER
Reducing Rate (18%)
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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