Compare the cost of loans under flat and reducing interest rate methods. Enter your principal, rate, and tenure to see the difference!
Loans can be offered at flat or reducing interest rates. Reducing rate is usually cheaper, as interest is charged only on the outstanding balance.
The calculator will show you the total payment and EMI under both methods.
Example: For a ₹5,00,000 loan at 10% for 5 years, reducing rate saves you money compared to flat rate.
Reducing rate is usually better for borrowers.
Flat rate appears lower but results in higher total interest.
Yes, this calculator works for any loan type.
For more details, consult your lender or financial advisor.