Loan true cost & APR checker
See what your loan offer really costs once fees, GST and other charges are included.
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- Formulas published
Real annual cost (APR)
15.69%
Fees and charges of ₹11,800 push the real annual cost from 14.00% to 15.69%.
- EMI
- ₹17,089
- Money you receive
- ₹4,88,200
- Fees & charges (incl. GST)
- ₹11,800
- Total interest
- ₹1,15,197
- Total cost of borrowing
- ₹1,26,997
- Total you'll pay
- ₹6,15,197
- Interest: ₹1,15,197 (91%)
- Fees & charges: ₹11,800 (9%)
Assumptions behind this estimate
- Fixed interest rate on reducing balance, with equal monthly instalments starting one month after disbursal.
- APR is 12 × the monthly internal rate of return on the net amount after all upfront fees and charges — the approach illustrated in RBI's Key Facts Statement circular (April 2024).
- Fees are treated as paid at disbursal, whether deducted from the loan or paid separately.
- Other charges are taken as entered (we assume they already include any tax). GST applies to the processing fee only when the GST toggle is on.
- Excludes penal charges, bounce charges, foreclosure charges and anything payable later in the loan.
- This is an educational estimate. Your lender's KFS is the authoritative document for your loan.
Real annual cost (APR)
15.69%
How this works
How we calculate a loan's APR from the interest rate, tenure, processing fee, GST and other charges, using the IRR method shown in RBI's KFS circular. Read the full methodology, formulas and sources.
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Frequently asked questions
What is APR on a loan?
APR (annual percentage rate) is the yearly cost of a loan including interest and upfront fees and charges. Because fees reduce the money you actually receive while your EMIs stay the same, the APR is usually higher than the interest rate on the offer.
How does this checker calculate APR?
It finds the monthly rate at which your EMIs exactly repay the amount you actually receive after fees and charges (an internal rate of return), then multiplies it by 12. This is the method illustrated in RBI's Key Facts Statement circular of April 2024, and our calculator reproduces RBI's worked example (17.07%).
Why is my APR different from the APR on my KFS?
Small differences can come from charges we don't know about, a first EMI date that isn't exactly one month after disbursal, or rounding. If the gap is large, check the KFS line by line or ask the lender to explain it.
Should I pick the offer with the lowest interest rate?
Not always. An offer with a lower rate but a higher processing fee can cost more overall, especially on shorter loans. Compare the total cost and APR of each offer for the same amount and tenure.
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Last reviewed · Reviewed by ClearRupee Editorial Team