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About the APR Calculator
The Annual Percentage Rate is the interest rate plus every mandatory cost of taking the loan, expressed as a single annual figure. It matters because a lender quoting 10.5% with a 2% processing fee is more expensive than one quoting 10.9% with no fee, and the headline rate hides that completely.
The maths is simple in principle: you pay EMIs calculated on the full sanctioned amount, but the money that reaches your account is the sanction less the fees. The APR is the rate that reconciles those two facts.
The formula
Solved numerically — there is no closed-form expression for APR.
Things worth knowing
Frequently asked questions
The interest rate is the cost of the borrowed principal alone. The APR adds every mandatory upfront charge — processing fees, documentation, bundled insurance — and expresses the total as an annual rate.
Because fees are deducted before disbursal. You pay EMIs on the full sanctioned amount while receiving less than that, so your effective borrowing cost is higher than the quoted rate.
APR, always. It is the only figure that lets you compare a low-rate loan with high fees against a higher-rate loan with none.
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