What is this calculator?
Estimate the annual effective borrowing rate including upfront fees.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Estimate the annual effective borrowing rate including upfront fees.
How to use it
- Enter loan amount.
- Enter nominal annual interest (%).
- Enter monthly payments.
- Enter upfront financing fees.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
Effective annual rate = (1 + solved monthly rate)^12 − 1
The contractual payment is first calculated, then a cash-flow rate is solved using the amount actually received.
Worked example
Loan amount: 100000, Nominal annual interest (%): 10, Monthly payments: 36, Upfront financing fees: 2000. The result is 12.00846236% (effective annual borrowing rate).
Assumptions and limits
Cash-flow effective annual rate. Statutory APR disclosure methods can differ by country.
Frequently asked questions
What inputs does the APR Calculator need?
Use loan amount, nominal annual interest (%), monthly payments, upfront financing fees. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the APR Calculator?
Cash-flow effective annual rate. Statutory APR disclosure methods can differ by country.