General

Short-Term Loan True Cost

What a short loan's charges really cost as a yearly rate.

Your numbers

Your result

Paying Rs 5,000 on Rs 50,000 for 90 days works out to about 40.56% a year.

These are example numbers. Change them to your own.

  • Amount borrowed (91%): Rs 50,000
  • Charges (9%): Rs 5,000
Yearly rate
40.56%
Yearly rate, compounded
47.19%
Total to repay
Rs 55,000

How this works

Yearly rate = charges ÷ amount borrowed × (365 ÷ days). The compounded rate assumes you take the same loan again each time it ends. It assumes one repayment at the end; paying in instalments makes the true rate higher.

For illustration only, not investment or financial advice. Your numbers are not stored or sent anywhere.

Related tools