Fixed vs Floating Rate Calculator 2026
Compare fixed and floating interest rates for your home loan and find out which option saves you more money
Fixed Rate
9.00%
Never changes
Floating Rate
8.00%
Changes with market
Rate Difference
1.00%
Floating is lower
Potential Savings
₹ 7.6 Lakhs
Over 20 years
Current Market Outlook
Moderate - Rates Expected to Remain Stable
RBI Repo Rate
6.50%
10-Yr Bond Yield
7.20%
Fixed Interest Rate
Fixed for entire tenureFloating Interest Rate
Changes with marketRate Movement Scenarios:
When to Choose Which?
- • Fixed Rate: When rates are low and expected to rise
- • Floating Rate: When rates are high and expected to fall
- • Short Tenure (<5 yrs): Fixed rate gives certainty
- • Long Tenure (>10 yrs): Floating usually saves more
Recommended Option
Floating Rate is Better
You could save ₹ 7,59,360 in interest
Fixed Rate
9.00%Monthly EMI
₹ 44,986
Total Interest Payable
₹ 57,96,640
Total Payment
₹ 1,07,96,640
Floating Rate
8.00%Starting EMI
₹ 41,822
Total Interest Payable*
₹ 50,37,280
Total Payment*
₹ 1,00,37,280
Interest Difference
₹ 7,59,360
Floating saves more
Monthly Saving
₹ 3,164
With floating rate
Break-even Rate
9.85%
Floating crosses fixed
Rate Sensitivity Meter
Interest Rate Projection (Next 10 Years)
Market Scenarios Explained
Fixed Rate
Constant at 9.00% throughout
Optimistic
Rates decrease by 0.2% yearly
Moderate
Rates remain stable
Pessimistic
Rates increase by 0.2% yearly
Recommendation based on your inputs:
Choose Floating Rate
With current spread of 1% and long tenure, floating rate is likely to save you money even if rates rise moderately.
Historical Rate Comparison (Last 10 Years)
| Year | Fixed Rate | Floating Rate | Difference | Better Option |
|---|---|---|---|---|
| 2015 | 10.25% | 9.75% | 0.50% | Floating |
| 2016 | 10.00% | 9.50% | 0.50% | Floating |
| 2017 | 9.50% | 8.75% | 0.75% | Floating |
| 2018 | 9.25% | 8.50% | 0.75% | Floating |
| 2019 | 9.00% | 8.25% | 0.75% | Floating |
| 2020 | 8.50% | 7.50% | 1.00% | Floating |
| 2021 | 8.00% | 7.00% | 1.00% | Floating |
| 2022 | 8.50% | 7.50% | 1.00% | Floating |
| 2023 | 9.00% | 8.00% | 1.00% | Floating |
| 2024 | 9.25% | 8.25% | 1.00% | Floating |
❓ Frequently Asked Questions
What is the difference between fixed and floating interest rates?
Fixed Interest Rate: Remains constant throughout the loan tenure. Your EMI never changes, providing certainty and easy budgeting. Usually 1-2% higher than floating rates.
Floating Interest Rate: Changes based on market conditions and is linked to external benchmarks like RBI Repo Rate or MCLR. Starts lower but can increase or decrease over time.
Which is better for a home loan - fixed or floating?
For long-term home loans (15-20 years), floating rates are generally better because they start 1-2% lower, historical data shows they remain lower over long periods, you benefit when RBI cuts rates, and most borrowers save 15-25% in total interest. Fixed rates are better only if you expect rates to rise sharply and you want payment certainty.
How often do floating rates change?
Floating rates typically change every 3-6 months, depending on RBI monetary policy announcements (every 2 months), bank's MCLR revision date (usually quarterly), and market liquidity conditions. However, the actual impact on your EMI may be adjusted less frequently, often annually.
Can I switch from fixed to floating rate?
Yes, most banks allow switching, but consider conversion fee (0.5% to 1% of outstanding loan), processing time (2-3 weeks), documentation, and timing. Calculate if the long-term savings justify the conversion cost.