Lease & Loan Calculator
Enter the flat rate a dealer quotes you, see what it really costs as a reducing-balance rate, and compare.
The dealer calls it 12.0% flat — but calculated honestly, you are paying a 20.31% reducing rate on Rs. 3,000,000.
If the dealer gave you this loan at an honest 12.0% reducing rate, your installment would be only Rs. 66,733/mo.
- Amount borrowedRs. 3,000,000
- Fair reducing interestRs. 1,004,001
- Flat-rate hidden extraRs. 795,999
That's about 9.9 extra monthly installments, just from how the rate is quoted.
That "cheap" flat rate costs you Rs. 795,999 more in interest than the same loan priced honestly. Always ask for the reducing-balance rate.
Licensed finance companies are legally required to disclose the annualized reducing rate if you ask.
With flat rates, early settlement penalties can leave you paying interest for years you never used.
Upfront fees reduce your actual in-hand cash, quietly driving your true borrowing cost even higher.
Net salary with 8% employee EPF, 12% employer EPF, 3% ETF and downloadable payslip.
Home loan EMI, private bank (reducing) vs state bank (equal capital).
Personal loan EMI, total interest and the cash you'll actually get.
Questions
A flat rate charges interest on the full loan amount for the whole tenure, even after you've repaid half of it. A reducing rate charges interest only on the balance you still owe. A 12% flat rate costs about the same as a 20% reducing rate.
Because the number looks smaller. Quoting 11% flat sounds cheaper than 19% reducing, even though the monthly payment is nearly identical. This calculator shows the true rate so you can compare offers fairly.
No. Enter the financed amount (vehicle price minus your down payment), since interest is charged on what you borrow, not the sticker price.
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