Loan True Cost Calculator

The real cost of any loan: interest plus processing fee, GST, insurance and charges, the effective rate, and two offers side by side.

Offer A

the quote in hand
1–3% typical; 18% GST applies on the fee
Often financed into the loan — add it here
Documentation, stamp duty, technical valuation…

Offer B (optional)

the competing quote
Total cost of credit — Offer A
₹0
Monthly EMI₹0
Total interest₹0
Processing fee₹0
GST on fee (18%)₹0
Insurance + other charges₹0
Net amount you receive₹0
Effective rate (true cost)—
Cost as % of loan0%
💡
Negotiation angle: when a lender quotes 14%, ask for the "effective rate including all charges". A 2% fee on a 3-year loan adds roughly 1.3% a year — you can often negotiate the fee down instead of the rate.

Methodology & assumptions

how this number is produced

EMI = P·r·(1+r)ⁿ / ((1+r)ⁿ−1) · Effective rate: solved from net disbursal vs the EMI stream (annualised)

Assumptions

  • Processing-fee GST at 18% per current GST law
  • Insurance and other charges treated as upfront deductions from disbursal
  • Effective rate assumes EMIs paid exactly as scheduled, no prepayment

Limitations

  • Lenders may structure charges differently (deducted vs financed) — verify against the sanction letter
  • Penal charges for late payment are excluded; they depend on your behaviour, not the offer
  • Floating-rate loans can reprice — the effective rate holds for the disbursement structure only

Results are informational estimates produced by MyCapitalverse's own models. They are not financial advice and may differ from how a lender, insurer or authority computes the same figure.

Verified 2026-09Next review: 2027-02-28Methodology & verification →Verify current terms before applyingReport outdated info

How to use the Loan True Cost calculator

  1. Enter the loan amount, rate and tenure.
  2. Add the processing fee, insurance and other charges.
  3. Compare the effective rate and total cost of two offers.

About this tool

A lower headline rate can cost more once fees and bundled insurance are added. This adds everything you pay and converts it into one effective annual rate.

Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem

Questions people ask

What is the true cost of a loan?

Total interest plus every fee and charge you pay to get and keep the loan, including GST on fees.

Should I pick the lower rate or the lower fee?

Compare the effective rate. On short loans a high fee matters more; on long loans the rate dominates.