Fixed vs floating interest rates on loans

A fixed rate stays constant for the agreed period (sometimes the full tenure, sometimes a fixed period then floating). EMI math is straightforward: one annual rate for the whole calculation unless your contract changes.

A floating rate can change when the lender revises its benchmark (often linked to policy or external benchmarks in India, such as repo-linked or RLLR/EBLR-style pricing). Your EMI, tenure, or both may be adjusted after a reset.

On WealthStack, choose Floating, enter the starting rate, add rate resets as “from month X at Y%,” and pick whether the tool should adjust EMI (keep remaining tenure) or adjust tenure (keep EMI) — matching common lender policies.

Use fixed if your agreement keeps one rate. Use floating if you want to stress-test rate hikes or model known past resets. Calculators cannot predict RBI or bank decisions; you supply assumed reset paths.

For a step-by-step walkthrough of a rate hike on a home loan, see the floating rate reset guide.