# Flat vs Reducing Rate EMI Calculator

Loan Amount

Min ₹100000

Max ₹10000000

Rate of interest (p.a)

Min 5%

Max 20%

Loan tenure

Min 1 yr

Max 30 yr

Flat Rate

Reducing Rate

Monthly EMI

₹2208

₹6652

Total interest

₹32500

₹299123

Total amount

₹132500

₹399123

Save ₹-266623 with reducing balance interest rate.

EMI stands for Equal Monthly Instalment. It is the fixed amount of money that a borrower needs to pay to a lender each month to repay a loan. The EMI typically includes both the principal amount borrowed and the interest charged on the loan. The amount of the EMI is determined by the loan amount, the interest rate, and the loan tenure (the number of months over which the loan will be repaid).

For example, if you take out a loan of ₹1,00,000 at an annual interest rate of 10% for a period of 3 years (36 months), your EMI would be the fixed amount that you would need to pay each month to repay the loan in full over the 3-year period.

What is a Flat vs Reducing Rate EMI Calculator?

A Flat vs Reducing Rate EMI calculator is a tool used to calculate the equal monthly instalment (EMI) that is required to pay off a loan. It typically takes into account the principal amount of the loan, the interest rate, and the loan tenure (i.e., the number of months over which the loan needs to be repaid).

The Flat vs Reducing Rate EMI calculator uses this information to compute the EMI, which is the fixed amount that a borrower needs to pay each month to fully repay the loan by the end of the loan tenure. Flat vs Reducing Rate EMI calculators are often used by individuals and businesses to plan their finances and budget for loan repayments.

How does an online Flat vs Reducing Rate EMI Calculator work?

An online Flat vs Reducing Rate EMI calculator typically works by gathering input from a user, such as the principal loan amount, the interest rate, and the loan tenure. It then uses a mathematical formula to calculate the EMI, which is the fixed amount that the borrower needs to pay each month to fully repay the loan by the end of the loan tenure.

The formula used to calculate the Flat vs Reducing Rate EMI is typically:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

where P is the principal loan amount, R is the interest rate (expressed as a decimal), and N is the loan tenure (expressed in months).

What are the factors on which the Flat vs Reducing Rate EMI calculation depends?

Flat vs Reducing Rate EMI calculation depends on the following factors:

- Principal loan amount: This is the amount of money that is borrowed. A higher loan amount will result in a higher EMI.
- Interest rate: This is the rate at which interest is charged on the loan. A higher interest rate will result in a higher EMI.
- Loan tenure: This is the period of time over which the loan is to be repaid, usually measured in months. A longer loan tenure will result in a lower EMI, but will also result in more interest being paid over the life of the loan.
- Repayment frequency: This is how often the EMI needs to be paid. Monthly EMI is the most common, but some loans may require weekly or bi-weekly payments.
- Type of Interest: The type of interest can affect the EMI calculation. For example, EMI calculation for fixed interest rate and floating interest rate will be different.

By taking into account these factors, an Flat vs Reducing Rate EMI calculator can calculate the fixed amount that a borrower needs to pay each month to fully repay the loan by the end of the loan tenure.

How to use the Trinkerr Flat vs Reducing Rate EMI Calculator?

To use Trinkerr Flat vs Reducing Rate EMI calculator, you will need to input the following information:

- Loan amount: The total amount you borrowed
- Interest rate: The annual interest rate on the loan
- Loan tenure: The number of months over which you will repay the loan

Once you have entered this information, the calculator will calculate the EMI for you.