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Useful Tools & Utilities to make life easier.
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IFSC Code Search Tool
IFSC Code Search Tool -
IFSC Code Search by Account Number
IFSC Code Search by Account Number -
Swift Code Finder
Swift Code Finder -
Find Bank Location By IFSC Code
Find Bank Location By IFSC Code -
Home Loan Prepayment Calculator
A home loan prepayment calculator is a tool designed to help borrowers estimate the impact of making extra payments on their home loans. By inputting various details about their mortgage and prepayment amounts, users can see how much they could save on interest and how quickly they can pay off their loan. -
Rule of 72 Calculator
Rule of 72 Calculator -
Sukanya Samruddhi Yojna Calculator
Sukanya Samruddhi Yojna Calculator -
Fixed Deposit Calculator
Fixed Deposit Calculator -
Recurring Deposit Calculator
Recurring Deposit Calculator -
Car Loan Calculator
Car Loan Calculator -
Flat vs Reducing Interest Calculator
Flat vs Reducing Interest Calculator -
Scientific Calculator
Scientific Calculator with double-digit precision that supports both button click and keyboard type. -
Credit Card Validator
Validate any Credit Card Details -
PAN Card Validation
PAN Card Validation -
Virtual Coin Flip
Coin Flip is an online heads or tails coin toss simulator. -
Post Office Search By Pincode.
Post Office Search By Pincode. -
Post Office Search By Name
Post Office Search By Name.
Flat vs Reducing Interest Calculator
Flat vs Reducing Interest Calculator
Loan Calculator with Amortization Schedule
Results
Flat Rate
Total Interest:
Total Payment:
Monthly Payment:
Reducing Balance Rate
Total Interest:
Total Payment:
Monthly Payment:
Total Savings on Interest
You save: by choosing the Reducing Balance method
Amortization Schedules
Year
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
Year
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
FAQs - Frequently Asked Questions
A flat interest rate is a fixed percentage that is applied to the initial loan amount throughout the entire loan tenure. The interest is calculated on the total principal amount for the entire duration of the loan.
A reducing interest rate, also known as a diminishing or declining balance rate, is calculated on the outstanding principal amount after each repayment. The interest amount decreases as the principal amount reduces over time.
In a flat interest rate calculation, the interest is computed on the original loan amount for the entire loan period, and this amount is added to the principal, resulting in equal installment payments throughout the loan term.
In a reducing interest rate calculation, the interest is calculated on the remaining loan balance after each repayment. As you pay off the principal, the interest portion of your installments decreases, leading to potentially lower overall interest payments.
Generally, the reducing interest rate results in lower total interest payments compared to the flat interest rate because the interest is calculated on the declining balance of the loan.
Lenders offer both options to cater to different borrower preferences and financial situations. Some borrowers may prefer the predictability of fixed monthly payments with a flat rate, while others may opt for the potential savings with a reducing rate.
Enter the principal loan amount, interest rate, loan tenure, and select the interest rate type (flat or reducing). The calculator will then compute and display the monthly installments and total interest payable for both types.
Switching interest rate types during the loan tenure depends on the lender's policies. Some lenders may allow it, usually involving refinancing or restructuring the loan, while others may not.
The nominal flat interest rate is typically lower than the reducing interest rate, but the actual interest cost over the loan tenure is usually higher with a flat rate due to the constant application of interest on the original principal amount.
Consider factors such as the total interest payable, monthly installment amounts, your financial stability, loan tenure, and your preference for predictability in payments versus potential savings. Use the calculator to compare both options and choose the one that best fits your financial situation.
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