Calculate Interest Rates
Understand how loan interest rates impact your repayments with our Interest Rate Calculator. Easily compare rates, calculate costs and make informed borrowing decisions. Plan your finances confidently with NBF’s user-friendly tool. Try it today!
What is the Difference Between APR and Flat Rate Interest?
When considering a loan, it’s essential to understand the difference between Annual Percentage Rate (APR) and flat interest rates.
APR is applied to the reducing balance of the loan over the repayment period, meaning you pay interest only on your remaining balance, which decreases over time.
In contrast, a flat interest rate is applied to the original loan amount throughout the entire repayment period, resulting in higher overall interest payments. Even if a flat rate appears lower, it can lead to higher monthly repayments compared to an APR of the same rate.
To make an informed decision, consider using NBF’s quick converter tool to compare the two.
