Loan Interest Calculator
Want to know how much interest you're actually paying over the life of a loan? Enter the amount, rate, and tenure and compare the reducing balance method (how banks actually charge) against flat rate - the difference is bigger than most people expect.
How to use
- Enter your loan amount, interest rate, and tenure.
- Pick Reducing Balance if you're dealing with a bank loan. Flat rate is used by some NBFCs and car dealers.
- Reducing balance charges interest only on what you still owe - fairer and cheaper.
- Flat rate charges interest on the full original amount throughout - sounds lower but costs more.
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Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.