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Learn about interest rates

Knowing about the different types of profit rates will empower you to make the best decision when applying for a finance.

If you're considering taking out a finance, it is important that you understand the difference between APR and flat profit rates.

At first glance, flat rates appear considerably more attractive. However, because of the way they are calculated, a flat rate results in a higher monthly repayment amount than an APR of the same rate, by a significant margin.

How is APR profit calculated?

The quoted APR profit rate is applied to the reducing balance of the finance over the repayment period. As a result, you pay profit only on your remaining balance, which will have significantly reduced in the final period of the finance repayment.

How is flat rate profit calculated?

The quoted flat profit rate is applied to the original value of the finance throughout the finance repayment period. Therefore, you pay profit on the full finance amount in the final period of the finance, even though your remaining balance will by then be greatly reduced.

Still confused? Don't worry - you're not alone. Use our quick converter to check whether you should go with an APR or flat profit rate.

Flat Profit Rate VS APR

Enter a finance amount between 1 and 1,000,000 AED
Enter a finance period between 1 and 48 months
Enter a valid profit rate

Monthly Payment (AED):

Equivalent APR Profit Rate (%):

APR vs Flat Profit Rate

Enter a finance amount between 1 and 1,000,000 AED
Enter a finance period between 1 and 48 months
Enter a valid profit rate

Monthly Payment (AED):

Equivalent Flat Profit Rate (%):

Please note that figures stated are indicative and should only be used as a guide. They should not be considered final calculations or as a commitment from NBF to grant a finance. To establish final accurate figures, please visit any NBF branch where a member of our team will be happy to assist you, ensuring you get the best deal to match your requirements.