## Flat rate to reducing balance rate Excel calculator

Few banks in UAE quote their interest rates in Flat rate. I have previously written on Personal Loan interest rate. **Read it HERE.**

A flat rate is a type of interest rate which is calculated on the entire amount of loan throughout its tenure. For example, if you take a car loan for AED 50,000 the interest charged is, let’s say 5%. Now this 5% is charged on the entire AED 50,000 throughout the tenor.A reducing balance interest rate is the one where the interest is charged on the outstanding principal amount after monthly deductions.

Borrowers need to beware of the banks charging flat rate of interest as this is not expressively published; but in most cases hidden in the ‘star’ mark. To make it easy for you to calculate what the effective rate of interest will be here is a calculator to covert Flat interest rate to a reducing balance interest rate.

Having your loan denominated in Reducing balance interest rate may save you a lot of money.

**Download Excel:**

I have received many emails asking me to provide the Reducing Balance to Flat rate excel calculator. You can download the excel calculator below by entering you details. It contains Ammortisation, Flat to Reducing and Reducing to Flat calculator. Once you enter your details, you will receive an email with the download file of Excel Calculator:

The download is not available at the moment.

I believe this will help you.

Rishi says

17/07/2017 at 15:03Dear sir,

Can you please draw the complete repayment schedule for flat interest rate

Rishi says

17/07/2017 at 15:02Dear sir,

Can you please draw the complete repayment schedule for flat rate of interest.

Mehwish says

20/10/2016 at 16:52Will u please guide me that how can I convert flat rate in to reducing rate and reducing rate in to flat rate .

Thanks

Rekha says

07/08/2016 at 22:38Nice!!! This is exactly what I was looking for..

rajkumarj says

18/07/2016 at 16:13please send me the excel to calculate the reducing vs flat rate emi to my email id. Thanks in advance

Abir says

11/02/2016 at 19:25Hey!! Please Guys, Can anyone send me the sheet because I am not finding one to convert from flat to reducing rates or the other way round.

Thanks!!

Abi says

13/09/2015 at 22:05Hi

My husband is working n Dubai and we are planning to go for a personal loan. So can u please send me the excel to calculate the reducing vs flat rate emi to my email id. Thanks in advance

Deepak says

14/09/2015 at 18:57Abi,

You can do it online.

I seem to have lost the excel.

Lucas Lukiri says

16/07/2015 at 14:06Kindly send me a copy of the template

pratheesh says

10/04/2015 at 18:28Nice one….

Kashif says

14/03/2015 at 16:31Hi, this is fascinating. I need to download the excel file for Convert flat interest rate to reducing balance interest rate-Excel calculator to learn the formula.

sabari says

19/02/2015 at 13:27thanks a lot

jk says

29/09/2014 at 10:32can you show me the formula used in B12

Deepak Machado says

30/09/2014 at 09:20Please read the comments.

shamsh says

14/08/2014 at 10:13please send me Flat rate to reducing balance rate Excel calculator

Hemant says

21/09/2013 at 15:33My question is if reducing roi is 15 % p/a ?

1 . What is the flat roi?

2 . What calculate should we use to know flat roi?

suzanne says

25/07/2013 at 10:48Hello. May I know how to convert flat interest rate to reducing balance? Is there any formula to convert it? what is the formula you use in the excel? I’m now a student studying finance and it is part of my assignment. My lecturer nee me to answer it. Hope to get answer from you. Thank you.

Brigette says

17/04/2013 at 19:50It’s difficult to find educated people on this subject, but you sound like you know what you’re talking about!

Thanks

Deepak M says

09/03/2013 at 14:33Hi Mohamed, In excel you would put the following formula: =RATE(B2*12,-B7,B1)*12

mohamad says

24/02/2013 at 21:29Please can you show the formula used in cell B9 ? Thanks a lot