About this calculator
Some lenders quote flat rates which appear lower but cost more than reducing balance rates. Always compare effective interest cost, not just the quoted rate.
How to use this calculator
Enter loan amount, quoted rate and tenure. The calculator shows EMI and total interest under both methods and your potential savings.
Frequently asked questions
Which method do Indian banks use?
Most regulated banks and NBFCs use reducing balance for home, personal and car loans. Flat rate is more common in informal or short-term lending.
Are these calculators free to use?
Yes. All calculators are free, require no signup, and run entirely in your browser.
Results are estimates for planning purposes only — not investment, tax or legal advice. Verify rates on official sources before acting. Compare brokers on our best stock brokers guide or use the brokerage calculator.