Flat Rate vs Reducing Rate Calculator
The same advertised percentage can produce very different borrowing costs. Compare a flat-interest quote with a standard reducing-balance loan.
| Method | Monthly EMI | Total interest | Total repayment |
|---|---|---|---|
| Flat rate | — | — | — |
| Reducing rate | — | — | — |
Extra interest under flat rate—
How to use this result
Flat interest is calculated on the original principal for the full tenure. Reducing-balance interest is calculated on the outstanding principal, so compare total repayment rather than the headline percentage alone.
Results are illustrative estimates, not a lender quote or approval. Confirm rates, fees, eligibility rules and repayment terms directly with the lender.