Loan Interest Calculator Loan & EMI
Compare Flat Interest Rate vs Reducing Balance Interest Rate and uncover true effective borrowing costs.
Loan Details
Flat vs Reducing
10 Lakhs
₹
₹ 50,000
₹ 50 Lakhs
₹ 1 Crore
10.0% p.a.
%
5%
10%
15%
25%
5 Years (60 Months)
Years
1 Year
5 Years
10 Years
15 Years
Important Difference:
In Flat Rate loans, interest is charged on the original principal throughout the entire tenure, even as you pay down the loan. In Reducing Balance loans, interest is calculated only on the remaining balance.
Flat vs Reducing Comparison
Real APR ~17.9%
Reducing Balance
₹ 0
Total Int: ₹ 0
Flat Rate
₹ 0
Total Int: ₹ 0
Extra Interest Cost
₹ 0
Extra out-of-pocketTotal Interest & Payment Comparison
Side-by-Side Breakdown
| Parameter | Reducing Balance | Flat Rate |
|---|---|---|
| Monthly EMI | ₹ 0 | ₹ 0 |
| Total Interest Paid | ₹ 0 | ₹ 0 |
| Total Payment | ₹ 0 | ₹ 0 |
| Effective Real APR | 10.0% | ~17.9% |