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APR Calculator


APR is the actual yearly interest rate paid by the borrower, figuring in the points charged to initiate the loan and other costs.A crucial line of difference exists between APR & interest rates. Learn more.

Interactive APR (Annual Percentage Rate) Calculator
Calculate actual interest rate you are paying due to additional cost of loan
Principal
 Amount of money borrowed
Additional Cost
 Processing fee, bond fee etc
Interest Rate
 Percentage of interest paid annually on principal
No of Months
 No. of months over which you will repay this loan

 

An Example
Let us take up this short example of APR calculation & see how it differs from normal interest rates:
Loan Amount (P) = $100
Additional Cost (E) = $5
Interest Rate (I) = 12%
Monthly Interest Rate (r) = R/100*12=0.01
Number of month (n) = 1


Now, applying Newton-Raphson Methodwe get APR (A) =0.0605*1200=72.60%


So from the above calculation we see that for a loan amount of $100 with 12% interest, APR can be as high as 72.60%, depending upon the extra costs &the time taken for repayment.


The calculation is however very confusing & critical. The calculator in this page makes that easier & faster.



 
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