David Chen is a Certified Financial Analyst with over 10 years of experience in financial calculations and loan management.
Enter the necessary values to calculate the Loan APR and adjust your loan terms.
Loan APR Calculator
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Loan APR Formula
APR = ((Monthly Payment x Loan Term) – Loan Amount) / Loan Amount
Formula Source: Investopedia
Variables:
- F: Loan Amount
- P: Interest Rate
- V: Loan Term
- Q: Monthly Payment
Related Calculators
What is Loan APR?
Loan APR (Annual Percentage Rate) is the cost of borrowing money, expressed as a yearly interest rate. It includes not only the interest charges but also additional fees or costs associated with taking out the loan.
How to Calculate Loan APR (Example)
- Step 1: Enter the loan amount, interest rate, loan term, and monthly payment.
- Step 2: Click “Calculate” to compute the APR.
Frequently Asked Questions (FAQ)
How is APR calculated? APR is calculated by dividing the total cost of the loan by the loan amount.
Does APR include taxes? No, APR does not include taxes or insurance fees.
Can I reduce my APR? You can negotiate for a lower APR by improving your credit score.
What is a good APR? A good APR depends on the type of loan and your credit score, but generally, a lower APR is better.