Enter each loan's terms to compare them side by side — all figures are calculated locally and never leave your device.
How it works
- Reducing Balance (EMI) — the standard for most mortgages, auto loans, and personal loans. Interest is charged only on the outstanding balance, recalculated monthly.
- Flat Rate — interest is charged on the full original principal for the entire tenure, even as you pay it down. For the same stated rate, this always costs more than reducing balance.
- Simple Interest (Interest-Only) — you pay interest monthly, with the full principal due as a lump sum at the end of the term.
- Compound Interest (Bullet) — no payments during the term at all; interest compounds monthly and the entire balance (principal + accumulated interest) is due as one lump sum at maturity.
- Daily Reducing Balance — like standard EMI, but interest accrues daily rather than monthly, which compounds slightly more often and typically results in marginally higher total interest for the same nominal rate.
- The comparison box tells you which side costs more overall, by how much, and names the interest type responsible — that same summary is included when you print or save as PDF.
- All calculations happen locally in your browser — nothing is sent anywhere.
Frequently asked questions
How does reducing-balance interest differ from flat interest?
Reducing-balance charges interest only on the outstanding amount, which falls over time, so the effective cost is lower. Flat interest is charged on the full original amount for the whole term, making it more expensive than the headline rate suggests.
Is my loan data private?
Yes. All calculations run in your browser and nothing you enter is uploaded, so your figures stay on your device.
Why do two loans with the same rate cost differently?
Tenure, interest method (reducing vs flat), fees, and prepayment rules all change the total cost. A longer tenure lowers the monthly payment but usually raises total interest.
Are these figures exact?
They're close estimates based on standard formulas. Your lender's actual rounding, fees, and rules may differ slightly — always confirm with the lender before deciding.
Why APR-style comparison became important
A monthly payment alone can hide the effect of rate, tenure and fees. Modern loan comparison emphasizes total cost and standardized rate measures because two loans with similar payments can have very different overall costs.
The payment is only one dimension
A longer loan can lower the monthly burden but increase the time interest accrues. Comparing principal, interest and total repayment reveals more than EMI alone.