True Loan Cost

A loan's advertised interest rate is rarely the full story — banks also charge processing fees, taxes on those fees, insurance, and other charges that add to your real cost of borrowing. This calculator adds up all of these extra costs on top of the EMI (your monthly installment) so you can see the true total cost of the loan, not just the headline interest rate. All rates here are reducing-balance (diminishing) rates — interest is charged each month only on what you still owe, which is how banks quote home, car and personal loans. If a dealer or lender quotes a "flat rate", it is NOT the same thing and is usually much more expensive than it looks — use the Flat vs Reducing Rate converter to compare.