Loan Calculator
Compare reducing-balance and flat-rate loans and find the real (effective) interest rate.
Visual breakdown
Detailed breakdown
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What is the Loan Calculator?
Some lenders quote a flat interest rate while banks use reducing balance. A 10% flat rate costs far more than a 10% reducing rate. This calculator converts both into EMI and the true yearly rate.
How to use this calculator
- Enter your values in the input fields. Use the sliders where available for quick changes.
- Choose the options that fit your case - currency, number format and decimals can be changed in the Options bar.
- The result updates instantly as you type. Press Calculate to refresh.
- Review the summary, the chart and the detailed table (when shown).
- Use Export & share to download a snapshot image (PNG or JPG), copy the result, print, save a CSV, or copy a link that reopens your inputs.
Formula and method
Reducing: EMI = P x r x (1 + r)^n / ((1 + r)^n - 1).
Effective rate is the reducing-balance rate that gives the same EMI.
Worked example
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Options you get
- Currency symbol and Indian or international digit grouping
- Decimal places control
- Instant results with charts and tables (where relevant)
- Snapshot image export (PNG / JPG), copy image, CSV, print and share link
- Light and dark themes - works on mobile, tablet and desktop
Frequently asked questions
What is a flat rate?
Interest is computed on the original loan amount for the entire tenure, even though the outstanding balance falls each month.
Which is cheaper?
At the same quoted percentage, reducing-balance loans cost much less than flat-rate loans.
Is this calculator free to use?
Yes. All MCSBiz calculators are free, work in your browser and need no sign-up.
Is my data stored or sent to a server?
No. Calculations run on your own device. Your inputs are not uploaded, and nothing is saved unless you choose to share a link or export an image.
Can I save or share my result?
Yes. Use "Download PNG" or "Download JPG" to export a snapshot image, copy the result, print it, download a CSV, or copy a link that reopens the calculator with your inputs.
Important note
Results are estimates based on the inputs and assumptions shown. Investments are subject to market risk and past performance does not guarantee future returns. This is not financial, tax or legal advice - please verify with official sources or a qualified professional.