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APR vs Flat Rate Loan Calculator
Compare the true cost of APR and flat rate loans to find the cheaper option.
APR vs Flat Rate Loan Calculator
APR Monthly Payment
APR Total Interest
Flat Rate Monthly Payment
Flat Rate Total Interest
Cheaper Option
Explained by Rob Evans, EyeOnYourCredit.com
EyeOnYourCredit.com
Flat rate interest is often advertised on car finance and some personal loans. A flat rate of 5% sounds cheaper than an APR of 9%, but flat rates are calculated on the original loan amount for every year of the term, while APR is calculated on the declining balance. This makes flat rate loans significantly more expensive than they appear. This calculator reveals the true cost of both.
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