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How to calculate APR?

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gilap
gilap Posts: 33 Forumite
in Loans
Hi,
could anyone please tell me the mathematical formula for calculating the APR? I am aware of Martin's loan calculator but I can't take that with me when I'm negotiating a loan/finance deal.
Many thanks
Gila

Comments

  • Zapp_from_Planet_Zogg
    Zapp_from_Planet_Zogg Posts: 123 Forumite
    Very roughly, the APR is double the flat rate.

    So flat rate of 4.5% is around 9% APR

    APR also includes the finance costs (arrangement fee, repayment fee etc), so it isn't a simple formula.
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