Financing
Flat vs reducing interest
Flat interest is charged on the original amount for the whole term. Reducing interest is charged on what you still owe, and is usually cheaper.
The question this calculator helps answer
Which loan pricing method is cheaper for me?
The interactive calculator appears here as soon as the page loads. Calculations run in your browser and no account is required.
Frequently asked questions
What does this calculator tell me?
It helps answer a simple business question: Which loan pricing method is cheaper for me? Enter the best figures you have, then review the result and visual before deciding.
Can I use estimates instead of exact figures?
Yes. Start with your best estimate, then change assumptions to see how sensitive the answer is. Better inputs produce a better decision.
Can I compare more than one option?
Yes. Save one option, change the assumptions, save another, and compare the results side by side.