Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning and risk management.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning and risk management.
Enter the necessary values to calculate the APR and gain insights into the financial implications of your investment.
APR Calculator – FFIEC BSA/AML Examination Manual
APR Formula
APR = ((F / P) ^ (1 / Q) – 1) * 100
Formula Source: Investopedia
- F: Future Value
- P: Present Value
- V: Interest Rate
- Q: Time Period (in years)
Related Calculators
What is APR?
APR stands for Annual Percentage Rate and is used to measure the cost of borrowing, expressed as a percentage rate on an annual basis. It helps consumers understand the true cost of a loan or credit line.
How to Calculate APR (Example)
- Step 1: Input the future value (F), present value (P), interest rate (V), and time period (Q) into the fields.
- Step 2: Click “Calculate” to see the APR result.
Frequently Asked Questions (FAQ)
What does APR include? APR includes the interest rate as well as other fees or costs associated with a loan.
Is APR the same as the interest rate? No, APR includes additional fees while the interest rate is the basic cost of borrowing.
Can APR change over time? Yes, depending on the type of loan, APR can change during the term.