Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with expertise in financial planning.
David Chen is a Certified Financial Analyst with expertise in financial planning.
Use this calculator to estimate the APR for your loan. Enter any three values, and the fourth will be calculated.
Loan APR Calculator
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Loan APR Formula
APR = (Interest / Principal) / Time Period
Formula Source: Investopedia
Variables:
- Loan Amount (F): The total loan amount.
- Principal (P): The amount of money borrowed.
- Interest Rate (V): The interest rate applied to the loan.
- Time Period (Q): The number of years the loan will be paid over.
Related Calculators
- Loan Interest Rate Calculator
- Loan Payment Calculator
- Mortgage APR Calculator
- Personal Loan Calculator
What is Loan APR?
APR (Annual Percentage Rate) is the cost of borrowing money expressed as a yearly interest rate. It includes both the interest rate and any associated fees.
How to Calculate Loan APR (Example)
- Step 1: Enter the loan amount, principal, interest rate, and time period.
- Step 2: Click “Calculate” to determine the APR.
- Step 3: Review the detailed calculation steps and the APR result.
Frequently Asked Questions (FAQ)
What is the difference between APR and interest rate? APR includes the interest rate and any other fees, while the interest rate is just the cost of borrowing.
Can APR change over time? Yes, some loans have variable APRs that can change depending on the market conditions.
Why is APR important? It helps consumers understand the true cost of borrowing money.