Finance
Calculator for APR
Estimate yearly borrowing rate from fixed-payment loan, upfront fees and net money wey you receive. E include di effective yearly rate.
Add to workspaceYour numbers
Payment na every month, with no early repayment. Results dey update as you type. All calculation dey run inside your browser.
Yearly rate wey di model calculate
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Formula
First calculate fixed monthly payment from di principal, nominal interest rate and whole number of months. Then find di monthly discount rate wey make present value of all payments equal principal minus upfront fees. Di displayed yearly rate na 12 times dat monthly rate; di effective yearly rate compound am for one year. At zero interest with no fees, di two rates na exactly zero.
Example wey show the calculation
For loan of $10,000 at 6% nominal interest over 36 months with upfront fees of $300, di monthly payment before rounding na about $304.21937452. Total payments round to $10,951.90 and money wey you receive na $9,700. Di discount rate give yearly rate of about 8.06% and effective yearly rate of about 8.36%. Calculations use payments before rounding; actual payment rounding fit change di result.
Where e fit work and limits
Dis na mathematical fixed-payment loan cost model with monthly payments wey get equal spacing and fees wey dem deduct for di start. E no be statutory APR disclosure for any particular jurisdiction. Local rules determine charges wey count, timing, rounding and disclosure conventions. E no model variable rates, irregular dates, optional services or later charges. Compare lender disclosures with di rules and cash flows wey apply to dat loan.
Questions wey people dey ask often
Wetin make di two yearly rates different?
Di yearly rate multiply monthly discount rate by 12. Di effective yearly rate compound am over one year. Di two rates describe dis model; neither label guarantee say lender or local law use di same calculation.
Wetin if loan no get fees?
Di monthly discount rate equal di nominal yearly rate wey you enter divided by 12. With positive rate, yearly compounding produce higher effective rate. At zero interest and zero fees, di two rates na zero.
I fit use loan wey no get interest but get upfront fee?
Yes. Payments still repay di principal, but di fee reduce di money wey you receive, so discount rate and borrowing cost become positive.
Other tools wey relate to dis
- Calculator for loan repayment — monthly payment and total interest for any loan
- Calculator for mortgage repayment — the same repayment calculation for home loan
- Calculator for clearing credit card debt — how long revolving debt go take to clear
Results na estimates; dem no replace advice from qualified professional.