Finance
APR Estimate Calculator
Roughly estimate an APR from a loan amount, payment, and term.
The result is the estimated annual percentage rate, so it shows the approximate yearly cost of the loan after upfront fees, and a higher percentage means a more expensive loan.
Formula
APR is found by solving for the monthly rate that makes the present value of the payments equal the amount actually received, then annualising it.
How it works
This is a rough estimate found by iteration — it approximates the true APR, which also depends on fee timing and payment dates. Use a lender's disclosed APR for a final comparison.
Worked example
For example, with a loan amount of $10,000, a monthly payment of $300, a term of 36 months, and upfront fees of $200, the amount actually received is $9,800, and the estimated APR is about 6.42% per year.
FAQs
Why is APR higher than the interest rate?
Because fees are spread over the loan, raising the true yearly cost.
Why estimate instead of exact?
Exact APR needs payment dates and fee timing, which vary by lender.
What is the amount received?
Loan amount minus upfront fees — what actually reaches you.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
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