Flat vs Reducing Rate Calculator

Calculate your personal loan monthly payment with flat vs reducing rate EMI calculator in a few steps and check the total interest charges on your EMIs.

Loan Amount Loan Term ( in Months ) Flat Rate (per month): Reducing Rate (per month): Starting Date of EMI

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How to use Yttags's Flat vs Reducing Rate Calculator?

• Step 1: Select the Tool
• Step 2: Enter The Following Options And Click On The Calculate Button
• Step 3: Check Your Flat vs Reducing Rate Calculator Result

Flat vs Reducing Rate EMI Calculator - Use the Flexible Flat vs Reducing Rate EMI Calculator Online to calculate the Equated Monthly Installment (EMI) for your Flat vs Reducing Rate. Flat vs Reducing Rate EMI Calculator assists you in calculating the exact yearly and monthly installment amount of your Flat vs Reducing Rate.

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FAQs for Flat vs Reducing Rate Calculator

What is a Flat vs Reducing Rate Calculator?
A Flat vs. Reducing Rate Calculator helps compare the total interest paid on a loan or mortgage under flat (fixed) interest rate and reducing (variable) interest rate scenarios, assisting in making informed borrowing decisions.
Which is better reducing rate or flat rate?
Flat interest rates effectively remain higher than reducing interest rates, and the interest rates remain fixed during the loan's tenure, which is determined based on the principal amount of your car loan. Purchasing a car is a dream come true for people of all ages, whether they are salaried or self-employed.
How do you calculate reducing rate from flat rate?
This should help you understand clearly reducing rate to flat rate difference. Reducing rate of interest is also known as diminishing rate of interest. The formula to calculate reducing rate of interest is : Interest payable for each instalment = Outstanding loan amount x interest rate applicable for each instalment.
How do you calculate flat rate to effective rate?
If you'd like a rough estimate of the EIR for a flat interest rate loan, you can just multiply it by 2. So a flat rate of 3% per annum would have an EIR of about 6% per annum.
What are the advantages of flat interest rate?
In a flat interest system, the portion and principal in monthly installments will remain the same. Flat interest has the advantage of being easier and simpler to calculate. You can generally find flat interest anywhere, especially at non-bank financial institutions such as finance companies.