What is Apr calculator?

APR Calculator is an advanced device that helps you to compute the Annual Percentage Rate (APR), that is, the annual rate charged for the credit. APR then represents the total cost of the borrowed money. By computing the APR rate, you can easily compare different loan offers so that you can have a better understanding of the real cost of borrowing.

How do I find the Effective Annual Percentage Rate (APR)?

This basic APR Calculator finds the effective annual percentage rate (APR) for a loan such as a mortgage, car loan, or any fixed rate loan. The APR is the stated interest rate of the loan averaged over 12 months. Input your loan amount, interest rate, loan term, and financing fees to find the APR for the loan.

How do you calculate a periodic interest rate?

The obvious way to get the Periodic interest rate is the following: Periodic rate = Nominal interest rate / Number of payments in a year. Coming back to the shortcomings of the nominal interest rate, if we take into account the effect of compounding interest, we arrive at the Effective Annual Rate (EAR or EFF%).

What is a credit card Apr?

Though credit card APRs can vary significantly, almost all start with the U.S. Prime Rate, which is the interest rate financial institutions charge their customers for lending products. Credit card issuers add a small fee on top of that, called a margin, to the prime rate to get the APR.