We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

How to calculate APR?

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.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture