Flat-Rate Loan Calculator
ফ্ল্যাট রেট ঋণ ক্যালকুলেটর
Lenders often quote a low-looking ‘flat’ rate. See the real monthly cost and the equivalent reducing-balance rate so you can compare honestly.
= ৳5,00,000 · 5 lakh
The flat / add-on annual rate the lender quoted.
Results update as you type — no button to press.
The flat rate hides the real cost
A flat rate is charged on the full original amount for the whole term, even as you keep repaying it down. Your 9% flat rate is really about 15.71% on a reducing balance — and you pay ৳2,25,000 in interest over the term. Always compare loans using the reducing-balance rate, not the flat one.
Assumptions used
- The rate entered is a flat (add-on) rate — interest is charged on the full original amount for the entire term.
- Total interest = loan amount × flat rate × years; the EMI is the total payable spread evenly over the tenure.
- The ‘true cost’ is the reducing-balance annual rate that produces the same EMI.
- Fees, charges and insurance are not included.
Good to know
Why flat rates are misleading
With a flat rate you keep paying interest on money you've already repaid. That's why a flat rate's equivalent reducing-balance rate is usually almost double. Many BD auto, personal and informal loans are quoted flat — always convert before comparing with a bank's reducing-balance rate.
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OpenFrequently asked questions
What is a flat (add-on) interest rate?
Interest is calculated on the full original loan amount for the whole term and added upfront, regardless of how much you've repaid. It makes the rate look lower than it really is.
How does it compare to a bank EMI?
Banks usually quote reducing-balance rates. To compare fairly, use the ‘true cost’ reducing-balance figure this calculator shows, or the standard EMI Calculator.
Results are estimates for general guidance only and are not financial advice. Rates, tax rules and product terms change — always confirm the latest figures with your bank or Bangladesh Bank / National Savings before making a decision.