Interest Rate Calculator
Find the exact annual interest rate being charged on your loan from EMI, loan amount, and tenure.
Loan Details
₹
The principal amount disbursed
₹
Your actual monthly payment
months
Total repayment duration
Effective Annual Interest Rate
10.71% p.a.
Monthly rate: 0.8928%
Principal Amount
₹5,00,000
Total Interest Paid
₹1,48,000
Total Amount Paid
₹6,48,000
Interest % of Total
22.8%
About Interest Rate Calculator
Why verify your loan rate?
Lenders sometimes quote monthly rates or flat rates that appear low but translate to much higher annual rates. This calculator helps you find the true annual interest rate (also called APR — Annual Percentage Rate) using the reducing balance method used for EMI loans.
Flat rate vs Reducing balance
Banks quote reducing balance rates — interest calculated on outstanding principal each month
Flat rate (often quoted by dealers) is always higher — a 10% flat rate ≈ 18% reducing balance
Always compare loans using reducing balance (EMI) rates
RBI guidelines on interest
Personal loans: RBI allows banks to set their own rates
NBFC and microfinance: capped by RBI guidelines
Report predatory rates to RBI Complaint portal: cms.rbi.org.in
Legal limit for private lending: usually 2–3× bank rate
🔒 All calculations happen in your browser — no data is sent to any server. Results are for informational purposes only.