Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience, offering expert advice on financial planning.
David Chen is a Certified Financial Analyst with over 10 years of experience, offering expert advice on financial planning.
The Loan APR Calculator helps you calculate the APR for a loan based on four key variables. Input three variables to solve for the fourth.
Loan APR Calculator
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Loan APR Formula
APR = (Interest / Principal) * 100
Formula Source: Investopedia
Variables:
- Loan Amount (F): The total amount borrowed.
- Interest Rate (P): The interest rate on the loan.
- Loan Term (V): The duration of the loan.
- APR (Q): The Annual Percentage Rate of the loan.
Related Calculators
What is APR?
APR stands for Annual Percentage Rate, representing the total cost of borrowing, including interest and fees. It’s important to understand APR to evaluate loan terms effectively.
How to Calculate Loan APR (Example)
- Step 1: Input the loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to find the APR.
Frequently Asked Questions (FAQ)
How is APR different from interest rate? APR includes both the interest rate and any associated fees.
Can APR be reduced? Yes, refinancing or negotiating loan terms may reduce the APR.