Calculate the true Annual Percentage Rate of a loan including all fees and charges.
| Nominal Interest Rate | — |
| Total Fees | — |
| Monthly EMI | — |
| Total Interest Paid | — |
| Total Cost of Loan | — |
APR (Annual Percentage Rate) is the true cost of borrowing money expressed as a yearly rate. Unlike the nominal interest rate, APR includes all fees, processing charges, and other costs, making it a better tool for comparing different loan offers.
The nominal interest rate only reflects the cost of borrowing the principal. In this calculator, APR includes the fees you enter, such as processing or documentation fees. A loan with a lower interest rate but high fees may have a higher APR than a loan with a slightly higher rate but no fees.
Q: How is APR calculated?
A: This calculator assumes the fees are deducted from the loan you receive and that you repay in equal monthly EMIs. It finds the monthly rate at which those EMIs are worth exactly the amount you receive (loan minus fees), then multiplies it by 12. Lenders and regulators may use their own disclosure formula, so use the lender's key fact statement for the official figure.
Q: Is a lower APR always better?
A: Generally yes — lower APR means lower total cost of the loan. Always compare APR (not just interest rate) when shopping for loans.
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