Is a flat-rate loan really cheaper?

Compare flat-rate borrowing with an equivalent reducing-balance cost.

When this calculator is useful

Compare a flat-rate loan quote with the cost and equivalent rate of a reducing-balance loan.

What to enter

Enter the loan amount, quoted annual flat rate and loan term in months.

How to read the result

Review flat-rate EMI, total flat interest and repayment alongside the payment at the same nominal reducing rate and the estimated equivalent reducing-balance rate.

Questions worth testing

Compare different quoted flat rates or terms to see how sharply the equivalent reducing rate changes.