Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial calculations.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial calculations.
Use the APR Calculator to calculate the APR for different financial scenarios.
APR Calculator FFIEC Manual 314A Reports
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APR Formula
APR = (Interest + Fees) / Loan Amount × 100
Formula Source: Investopedia
Variables:
- F: Amount Financed
- P: Principal
- V: Interest Rate
- Q: Term Length
Related Calculators
What is APR?
APR (Annual Percentage Rate) represents the total cost of borrowing on a loan, including both the interest rate and any additional fees. It allows borrowers to compare different loan offers and make informed financial decisions.
How to Calculate APR (Example)
- Step 1: Enter the amount financed, principal, interest rate, and term length.
- Step 2: Click “Calculate” to get the APR value.
Frequently Asked Questions (FAQ)
How is APR calculated? APR is calculated by adding interest and fees to the loan amount and then dividing by the loan amount, multiplying the result by 100.
What is the difference between APR and interest rate? APR includes the interest rate plus any additional fees, while the interest rate is just the cost of borrowing the principal.