Loan Calculator

Calculate loan payments with flat vs reducing balance interest comparison

Quick Loan Types Presets

Loan Parameters

Loan Amount ₹5,00,000

₹1 Lakh ₹25 Lakh ₹50 Lakh

Interest Rate (Annual) 8.5%

5% 12.5% 20%

Loan Tenure (Years)

Interest Calculation Type

Monthly Payment

₹10,130

Reducing Balance

Total Interest ₹1,07,806

Total Payment ₹6,07,806

Loan Amount ₹5,00,000

Interest Comparison

Reducing Balance

₹10,130

Flat Interest

₹12,083

Difference ₹1,953

Potential Savings

Choosing reducing balance over flat interest can save you:

₹1,17,180

over 5 years

Dual Calculation

Compare flat vs reducing balance interest calculations side by side.

Savings Analysis

See how much you can save with different interest calculation methods.

Multiple Loan Types

Calculate payments for personal, home, car, and business loans.

How Loan Calculator Works

This calculator helps you understand loan payments using two common interest calculation methods - reducing balance and flat interest.

Reducing Balance: Interest is calculated on the outstanding principal, decreasing over time
Flat Interest: Interest is calculated on the full principal throughout the loan term
EMI Calculation: Equal Monthly Installments that include both principal and interest
Loan Types: Pre-configured for personal, car, home, and business loans
Savings Analysis: Compare both methods to see potential savings

Important Information

Understanding the difference between reducing balance and flat interest can save you thousands in loan costs.

Reducing Balance: Most common for home loans, car loans, and personal loans - more favorable for borrowers
Flat Interest: Often used in personal loans and consumer finance - results in higher effective interest rate
Loan Tenure: Longer tenures mean lower EMIs but higher total interest
Interest Rate: Even small rate differences can significantly impact total payment
Prepayment: Reducing balance loans benefit more from early prepayment

All calculations are for estimation purposes. Actual loan terms may vary based on lender policies and your credit profile.

How to Use the Loan Calculator

Select a loan type preset or adjust sliders manually
Enter loan amount, interest rate, and tenure
Choose between reducing balance or flat interest
Click "Calculate Loan" to see your EMI
Review comparison to see potential savings

Try different tenures to see how EMI changes.

Understanding Your Results

EMI: Your monthly payment (principal + interest)
Total Interest: Total interest paid over loan term
Total Payment: Principal + total interest
Difference: Savings with reducing balance vs flat interest

Use this information to choose the most cost-effective loan option.

Frequently Asked Questions

Is this loan calculator free?

Yes, completely free! No hidden costs, no registration. Calculate unlimited loan scenarios.

Is my financial data stored?

No. All calculations happen locally in your browser. We do not store any financial information you enter. Your privacy is fully protected.

What's the difference between reducing and flat interest?

Reducing balance calculates interest on the remaining principal, so interest decreases over time. Flat interest calculates interest on the full loan amount for the entire tenure, resulting in higher total interest.

How accurate are these calculations?

The calculations use standard financial formulas and are accurate for estimation purposes. Actual loan terms may vary based on lender policies, processing fees, and your credit profile.

Can I use it for home loans, car loans, and personal loans?

Yes! We provide presets for different loan types with typical interest rates. You can also customize the values for any loan type.

Why does reducing balance save money?

With reducing balance, you pay interest only on the outstanding principal. As you repay, the principal decreases, so interest charges reduce. This can save thousands compared to flat interest where interest is fixed on the full amount.