Loans & EMI

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.

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The flat / add-on annual rate the lender quoted.

Tenure unit

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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Frequently 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.