Calculate a loan’s APR
Enter loan details and fees. Get the APR and representative example to copy.
APR
In the United States, the monthly rate times 12 is 12.01%.
Representative example
Borrowing €10,000 over 36 months at a fixed interest rate of 9.9% a year with a one-off fee of €300, the monthly repayment is €322.20 and the total amount payable is €11,899.29. The representative APR is 12.7%.
APR rules in ads differ by market, so check your own market.
APR by term
The same one-off fee raises APR more on shorter loans.
Payments by year
| Year | Paid | Interest | Fees | Repaid | Year-end balance |
|---|---|---|---|---|---|
| 1 | €4,166.43 | €855.83 | €300.00 | €3,010.61 | €6,989.39 |
| 2 | €3,866.43 | €543.87 | €0.00 | €3,322.56 | €3,666.84 |
| 3 | €3,866.43 | €199.60 | €0.00 | €3,666.84 | €0.00 |
| Total | €11,899.29 | €1,599.29 | €300.00 | €10,000.00 |
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The next step is pricing each applicant’s rate and fees using rules tested on past loans before an offer goes out. Start free
See the formulas
Total one-off fee = One-off fee + Amount borrowed × Fee as a percentage Paid = Loan instalment + Monthly fee Amount received = Amount borrowed − Total one-off fee (Taken off) Amount received = Amount borrowed (Added to loan: Loan instalment ← Amount borrowed + Total one-off fee) Amount received = Σ Paidₘ ÷ (1 + i)ᵐ, m = 1 … Term (Monthly rate that makes them equal) APR = (1 + i)¹² − 1 APR, monthly rate times 12 = 12 × i
Insurance, late fees and other charges the borrower can avoid are left out.
Calculate APR from a loan’s rate and fees
APR expresses a loan’s interest and fees as a yearly rate. It is worked out from the amount the borrower receives and the payments they make over the loan term.
The APR brings the interest rate and fees together in one figure. Enter the loan details to see the APR, monthly repayment, total amount payable and representative example.
APR questions
How do I calculate APR from an interest rate and fees?
The APR is the yearly rate that makes the borrower’s payments equal the amount they received. The calculator uses the interest rate, fees, payment amount and term to work it out.
What is the difference between an interest rate and APR?
The interest rate is the rate charged on the loan before fees. APR counts the fees too, so it can be higher than the interest rate.
What does representative APR mean?
It is the APR shown for the loan in the representative example. This calculator works out the APR from the loan details and fees entered.
What is a representative example in a loan advert?
It sets out a loan’s amount, term, interest rate, fees, monthly repayment, total amount payable and representative APR. This calculator writes the example using the figures entered.
Why is APR higher on a short loan?
A one-off fee is spread across fewer monthly payments on a shorter loan. That can make the APR higher than on a longer loan with the same fee.