Effective annual cost incl. fees. The APR Calculator takes loan amount, nominal interest rate, tenure, upfront fees and charges and returns effective annual rate (apr) plus monthly payment, cash you actually receive, total interest and fees. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the APR Calculator works
Fees taken upfront mean you receive less than you repay interest on, which raises the true cost above the nominal rate. The APR puts loans with different fee structures on one scale.
Worked example
With the example values (loan amount of $100,000, nominal interest rate of 10%, tenure of 3 years, upfront fees and charges of $3,000), the effective annual rate (apr) is 12.11%; monthly payment $3,226.72, cash you actually receive $97,000.00, total interest and fees $19,161.87. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is effective annual rate (apr) calculated?
APR is the rate at which the payments repay the cash actually received (amount − fees).
Which figures do I need?
Loan amount, nominal interest rate, tenure, upfront fees and charges. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
