Loan APR / True Cost Calculator
The advertised interest rate rarely tells the whole story — processing fees and charges push up your real borrowing cost. This APR calculator solves for the effective annual rate that accounts for upfront fees, so you can compare loans fairly.
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Formula
APR is the rate at which the present value of all EMIs equals the net amount you actually receive (principal minus fees). It is solved iteratively from your EMI, tenure and fees.
Example
A ₹5,00,000 loan at 10% for 3 years with a ₹10,000 processing fee has an APR above 10%, because you effectively borrow less but repay the same EMIs.
Frequently Asked Questions
What is the difference between interest rate and APR?
The interest rate applies only to the principal, while APR also folds in fees and charges to show the true yearly cost of borrowing.
Why is my APR higher than the quoted rate?
Processing fees and other upfront charges reduce the money you receive but not your EMIs, so the effective rate (APR) is higher.
Related calculators
- EMI Calculator — Loan EMI, Interest & Schedule
- Loan Comparison Calculator — Compare 2 Loans Side-by-Side
- Loan Balance Transfer Calculator
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