India · planning tools
Flat vs Reducing Rate Calculator India
See why a quoted flat loan rate can represent a much higher equivalent reducing-balance rate over the same loan term.
Compare flat and reducing loan rates
Flat-rate EMI
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Flat total interest
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Flat total repayment
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EMI at same nominal reducing rate
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Interest at same nominal reducing rate
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Equivalent reducing-balance rate
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Why the rate methods differ
A flat-rate loan calculates interest using the original principal throughout the term. A reducing-balance loan calculates interest on the remaining balance.
Equivalent reducing rate
The calculator numerically solves for the reducing-balance rate that produces the same EMI as the flat-rate loan.
Educational estimate:
Results are for planning and comparison only. Verify product,
employment, tax and contractual terms with the relevant provider
or professional where applicable.