Loan APR calculator
Work out the true APR of a loan from the amount borrowed, your monthly repayment, the term and any fee.
Your estimate
True APR
0%
- Amount you receive
- £0
- Total repaid over the term
- £0
- Total cost of credit (interest + fee)
- £0
Estimate only, calculated from your repayment schedule using the standard reducing-balance method. Your lender's official APR may include other charges not entered here.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- APR
- Annual Percentage Rate, the true yearly cost of borrowing once fees are folded in, the figure lenders must quote by law.
- Interest rate vs APR
- The interest rate is just the cost of the money. The APR also includes arrangement or broker fees, so it’s usually a bit higher.
- Amount advanced
- What you actually receive, the loan amount minus any fee taken off before you get the money.
- Flat rate
- A simpler, lower-looking figure some lenders quote, based on the original loan rather than the reducing balance. Always compare APRs, not flat rates.
FAQ
Loan APR calculator, your questions answered
What’s a good APR for a loan?
It depends on the loan type and your credit profile, personal loans are often quoted from around 6-15% APR, business loans and credit cards are usually higher. Compare the APR, not the headline interest rate, to see the true cost.
Why is the APR higher than the interest rate I was quoted?
Because the APR folds in fees, an arrangement fee taken off the amount you receive increases the true cost of borrowing above the plain interest rate, this calculator shows you that gap.
How is APR calculated?
By finding the interest rate that makes the present value of all your repayments equal the amount you actually received, then annualising it. It’s the same maths lenders use, our calculator works backwards from your repayment amount to show it.
Does a lower APR always mean a better deal?
Usually, but check the total amount repayable too, a slightly higher APR over a shorter term can cost less overall than a lower APR over many more years.
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