Fixed Vs Reducing Interest
Compare the EMI, total interest and repayment cost of a flat-rate loan with a reducing-balance loan.
Loan details
₹
₹10,000₹50 lakh
%
0%36%
The same quoted annual rate is used for both methods.
Years
Months
Choose a tenure from 1 to 480 months in total.
Your comparison
Extra interest with flat rate
₹—
Compared with the reducing-balance method at the same stated rate.
Flat interest rate
Monthly EMI—
Total interest—
Total repayment—
Reducing balance
Monthly EMI—
Total interest—
Total repayment—
Total interest comparison
Flat rate's equivalent reducing rate (approx.)—
The equivalent rate is the reducing-balance annual rate that produces approximately the same EMI as the flat-rate loan.
View reducing-loan amortization schedule
| Month | Opening balance | EMI | Principal | Interest | Closing balance |
|---|
Estimate only. Assumes monthly payments, a constant annual rate divided by 12, and no processing fees, insurance, taxes, prepayment charges or lender-specific rounding. Actual lender figures may differ.