Principal amount borrowed
EMI shown in your sanction letter
Total repayment period
Annual Interest Rate (p.a.)
0%
Monthly Rate
0%
Total Interest You Pay
₹0
Why Use This Calculator?
Lenders sometimes quote a rate that differs from what you see in the fine print of your sanction letter. This tool reverse-engineers the actual rate being applied to your loan using the standard EMI formula via binary search. Use it to:
- Verify the rate quoted by your lender matches the EMI you are paying
- Detect hidden or inflated rate charges in informal loan agreements
- Compare cost of two differently structured loans
How the Calculation Works
We use a binary search between 0.001% and 50% monthly rate to find the exact rate r where EMI = [P × r × (1+r)^n] / [(1+r)^n - 1]. This converges to 8 decimal places of precision.