Loans / CALCULATOR
Loan Repayment Type Calculator
Compare reducing-balance EMI, flat-rate, step EMI, interest-only, balloon and bullet repayment structures.
How this works
- ① Reducing Balance EMI — EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]. Interest is charged only on the outstanding balance.
- ② Flat/Fixed Rate — EMI = [P + P×R×(n÷12)] ÷ n. Interest is computed once on the full principal and never reduces, so the effective rate is much higher than the stated flat rate.
- ③④ Step-Up / Step-Down EMI — the EMI is recalculated once a year, stepping up or down by your chosen %, while interest keeps accruing on the reducing balance underneath.
- ⑤ Interest-Only + EMI — EMI = balance × r during the interest-only period (the balance never drops), then a standard reducing-balance EMI on the full principal for the remaining tenure.
- ⑥ Balloon Payment — equal principal instalments repay part of the loan; the rest of the balance is due as one lump sum in the final month.
- ⑦ Bullet Repayment — no monthly payments at all; interest compounds monthly and the full amount, Amount = P × (1+r)ⁿ, is due at maturity.
P = loan amount, R = annual interest rate, r = R ÷ 12 ÷ 100 (monthly rate), n = tenure in months. Change the repayment type above to see how the schedule and total interest compare for the same loan.
Amounts are rounded for display; calculations use full precision. This utility is for planning and is not financial advice.