Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in finance and investment, offering expert advice on loan planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in finance and investment, offering expert advice on loan planning.
This calculator helps you calculate the loan APR based on different financial variables. Enter at least three of the four required values to compute the fourth.
Loan APR Calculator
Loan APR Formula
APR = (Total Interest / Loan Amount) * (12 / Loan Term)
Formula Source: Investopedia
Variables:
- Loan Amount: The principal amount borrowed.
- Loan Term: The duration of the loan in years.
- Interest Rate: The annual interest rate charged by the lender.
- Monthly Payment: The regular payment amount.
Related Calculators
What is Loan APR?
Loan APR (Annual Percentage Rate) represents the yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount.
How to Calculate Loan APR (Example)
- Step 1: Enter your loan amount, term, interest rate, and monthly payment.
- Step 2: Click “Calculate” to compute the loan APR.
- Step 3: Review the APR result and calculation steps.
Frequently Asked Questions (FAQ)
What is APR in a loan? APR represents the total yearly cost of a loan, including interest and fees.
How is loan APR calculated? APR is calculated using the loan amount, interest rate, and term to determine the total interest paid over the loan’s life.
Can APR change? Yes, APR may vary depending on the type of loan and the lender.