APR Calculator
Compute annualised credit cost including interest rate and loan origination charges. Compare true borrowing cost across lenders.
Processing fee, CERSAI, valuation and similar upfront charges
Results
- Monthly EMI
- ₹33,734
- Net amount disbursed
- ₹24,75,000
- Total interest
- ₹15,48,027
- Total payment
- ₹40,48,027
- Effective APR
- 11.29%
APR
10.74%
How APR is calculated
APR is the annualised credit cost including interest and origination charges. EMI is computed on the full loan amount; the IRR uses the net amount you receive (loan minus charges). Stamp duty and contingent charges (penal interest, late fees) are excluded — matching how Axis Finance and other Indian retail APR tools present indicative APR.
Last updated: 19 July 2026. APR figures are indicative planning tools — the Key Fact Statement from your lender is authoritative.
What is APR?
Annual Percentage Rate expresses the yearly cost of a loan including interest and origination charges. Two loans with the same headline ROI can have different APRs if processing fees differ. Indian digital lending guidelines expect APR disclosure so borrowers can compare offers fairly.
How this calculator works
Enter loan amount, tenure, ROI and origination charges. The tool computes EMI on the full principal, then solves for the monthly rate that makes the present value of EMIs equal the net amount disbursed (principal minus charges). APR is reported as monthly rate × 12; effective APR compounds that monthly rate annually.
Worked example: ₹10 lakh at 12% for 36 months with ₹15,000 fees → net disbursed ₹9.85 lakh; APR rises above 12% because you pay interest as if you received the full amount. Try the numbers above to match Axis-style APR tools.
| Feature | Headline ROI | APR | EMI |
|---|---|---|---|
| Includes fees? | No — interest rate only | Yes — interest + origination charges | No — monthly instalment amount |
| Best for | Quick rate comparisons | True cost when fees differ across lenders | Monthly budget fit |
| Shown in | Advertisements and sanction letters | Key Fact Statement / digital loan disclosures | Repayment schedules |
Related loan tools
Plan the monthly instalment with the EMI calculator, or model switching lenders with the balance transfer calculator.
Frequently asked questions about APR
What is APR on a loan?
Annual Percentage Rate is the annualised cost of credit including the interest rate and loan origination charges (processing fee, valuation, CERSAI, etc.). It helps compare offers when fees differ.
How does this APR calculator work?
It computes EMI on the full loan amount at the stated ROI, then finds the monthly IRR that equates the present value of those EMIs to the net amount disbursed (loan minus origination charges). APR is shown as monthly IRR × 12.
What charges should I include?
Include mandatory upfront charges at origination: processing fees, documentation, valuation, CERSAI and similar. Exclude stamp duty and contingent charges such as penal interest or late fees, as Axis Finance notes on its APR tool.
Why is APR higher than the interest rate?
Because you repay EMI on the full sanctioned amount but receive less in hand after fees. The same cash outflows against a smaller net disbursement imply a higher effective rate.
Is APR the same as effective interest rate?
This calculator also shows an effective APR compounded annually from the monthly IRR. Lenders often quote the nominal APR (monthly rate × 12). Use the same definition when comparing offers.
Will my sanctioned APR match this tool?
Indicative only. Actual APR in the Key Fact Statement depends on final charges, insurance if financed, and the lender’s exact methodology.
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