Flat Rate vs EIR Converter
Banks advertise a "5% Flat Rate" to make a loan look cheap. Convert it here to reveal the true Effective Interest Rate (EIR) you are actually paying.
The TRUE Effective Interest Rate (EIR) is:
0%
(Compounding annually)
Advertised Flat Rate:
0%
Difference (Hidden Cost):
+ 0%
Monthly Installment:
RM 0
Why is EIR always higher?
With a flat rate, you pay interest on the original loan amount every year, even though you are paying down the principal every month. EIR calculates interest only on your reducing balance, revealing the mathematically accurate cost of the loan.