Calculate flat interest, regular installments, total repayment and the approximate equivalent reducing-balance rate.
Flat rate interest is calculated on the original loan principal for the entire term, even as the outstanding balance falls. This differs from reducing-balance interest, which is calculated on the remaining principal.
Principal × flat annual rate × term in years.
Principal plus flat interest.
Total repayment divided by the number of installments.
A flat rate can appear lower than a reducing-balance APR while producing a similar or higher borrowing cost. Compare total repayment, fees and equivalent APR—not only the advertised rate.
No. APR and flat rate use different methods and may produce very different costs.
Flat interest continues to use the original principal even though the loan balance declines.
The calculator adds entered upfront fees to the overall borrowing cost but not to the installment unless the lender finances them.