About this calculator
The rate on the offer letter is not always the rate you pay. Fees taken before you get the money mean you borrow less than you repay on.
Enter the amount sanctioned, your EMI and the number of EMIs. We work out the rate that fits what you really received.
How it is calculated
- Money received = loan amount − upfront fees.
- The real rate is the monthly rate at which the present value of all EMIs equals the money received, multiplied by 12.
Assumptions. Equal monthly EMIs, fees paid upfront, no late charges. This is a nominal yearly rate (monthly × 12), the same basis banks use to quote loan rates.
Questions
What counts as a fee?
Processing fee, loan-protection insurance premium, documentation charge and any other amount deducted or paid at the start.
Why does this matter?
Two loans with the same quoted rate can cost very different amounts once fees are counted.
Is this exact?
It is a standard formula using the numbers you enter. Your bank, fund or lender may round differently or use different dates, so treat it as a close estimate and check the final figure with them.