Interactive APR (Annual Percentage Rate) Calculator The APR is the actual yearly interest rate paid by a borrower, figuring in the points charged to initiate the loan and other costs. Calculate actual interest rate you are paying due to additional cost of loan Principal * ($) Amount of money borrowed Additional Cost ($) Processing fee, bond fee etc Interest Rate * (%) Percentage of interest paid annually on principal No of Months * No. of months over which you will repay this loan Calculate Here is a short example of how to calculate the APR and see how it differs from normal interest rates: Loan Amount (P) = $100 Additional Cost (E) = $5 Interest Rate (I) = 12% Monthly Interest Rate (r) = R/100*12=0.01 Number of month (n) = 1 Now, applying Newton-Raphson Method, we get an APR (A) =0.0605*1200=72.60% From the above calculation, we see that for a loan amount of $100 with 12% interest, the APR can be as high as 72.60%, depending upon the extra costs and the time taken for repayment. 1 11 21 % Re-Calculate Joining a debt consolidation program can reduce your APR by reducing Interest Rate and extra cost, here you can check the effect of reduced interest rate on debt repayment. Monthly Payment = $ Total Payment = $ Total Interest =$ Months Payments Interest Paid Principal Paid Balance 1 8.46 0.08 8.38 92.62 2 8.46 0.08 8.38 84.24 3 8.46 0.07 8.39 75.85 4 8.46 0.06 8.4 67.45 5 8.46 0.06 8.4 59.05 6 8.46 0.05 8.41 50.64 7 8.46 0.04 8.42 42.22 8 8.46 0.04 8.42 33.8 9 8.46 0.03 8.43 25.37 10 8.46 0.02 8.44 16.93 11 8.46 0.01 8.45 8.48 12 8.46 0.01 8.48 Paid