Loan Amount (₹)
Rate Of Interest (p.a) (%)
Loan Tenure (%)
| Flat Interest Rate | Reducing Balance Interest Rate | |
|---|---|---|
| Monthly EMI | ||
| Total Interest | ||
| Total Amount |
Flat Interest Balance
Reducing Interest Balance
A Flat vs. Reducing Rate calculator is a financial tool designed to compare the cost of borrowing under two different interest rate methods: flat rate and reducing rate. In a flat rate method, interest is calculated on the entire principal amount throughout the loan tenure, resulting in fixed interest payments. On the other hand, a reducing rate method recalculates interest on the remaining principal balance, leading to gradually decreasing interest payments over time.