APR Calculator

APR Calculator

Estimate annual percentage rate from monthly loan cash flows and upfront or financed fees.

UNDERSTAND A ANSWER

Aika ng calculated el ua ngerang?

Assumes equal monthly payments starting one month after funding, a fixed rate and no balloon payment. Fees are paid at funding or added to the loan balance. This planning estimate is not a jurisdiction-specific regulatory APR disclosure.

Monthly discounted cash flowsNet proceeds = Σ payment / (1 + monthly rate)^k; annual rate = monthly rate × 12

A practical example

A 25,000 loan at 7.5% for 60 months has an APR above 7.5% when 500 in upfront fees are included.

Calculated result

Loan proceeds before feesScenarioCalculated result
20,00018.573%
25,00028.3554%
30,00038.2111%

Assumptions, interpretation me a common mistake

Calculation assumptions

  • Payments occur monthly at the end of each period with a fixed payment amount.
  • APR is the monthly cash-flow discount rate multiplied by 12; jurisdiction-specific disclosure rules may differ.
  • Upfront fees reduce net proceeds; financed fees increase the repayment balance.

El ua ngerang el interpret a result

  • Interest rate excludes fees; APR includes the entered loan fees.
  • A payment below principal divided by term would require a negative rate and is not supported.
  • Rounded monthly payments can produce a slightly different implied rate.

Common mistakes el mo avoid

  • Entering an annual payment as a monthly payment.
  • Counting the same fee as both upfront and financed.
  • Treating this planning estimate as a legally compliant lender disclosure.