Calculator
Flat interest vs. interest on the balance
Enter your amount, your rate and your instalments, and compare how much the client pays with each method. The gap is usually bigger than it looks.
The rate you charge per instalment, matching the frequency you pick below.
The result, side by side
Flat interest
- monthly instalment
- 1,333.33
- Total interest
- 6,000.00
- Total to repay
- 16,000.00
Interest on the balance
Costs less- monthly instalment
- 1,128.25
- Total interest
- 3,539.07
- Total to repay
- 13,539.00
Interest on the balance saves the client 2,460.93 (41.0%) versus flat.
Educational calculation using the French method formula. It does not replace the real amortisation schedule of your loan or legal advice on interest caps in your country.
Ready to charge with the right method?
Prestafolio calculates the full schedule with whichever method you pick, before you hand the money over.
Get startedKeep reading: Flat interest vs. interest on the balance: the real gap