Calculating apr

edited 30 November -1 at 1:00AM in Loans
6 replies 5.2K views
well-medicatedwell-medicated Forumite
185 Posts
100 Posts
edited 30 November -1 at 1:00AM in Loans
I remember something about this from my school lessons, but can sombody tell me what the calculation is for APR? I think it involves Principle (amount), Time (in months) and Rate (flat rate interest).

Or am I talking nonsense?

I gave up jogging for health reasons; my thighs rubbed together and my knickers caught fire!


  • grumblergrumbler Forumite
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    ..Or am I talking nonsense?...
    Yes IMHO. Sorry :o
    Have a read of this:
    APR: Whats the difference between AER and APR? , Please Help Apr And Ear
    Flat rate vs APR: Personal Loans (> Be especially careful with car loans > Don’t Be A Flat Rate Fool).
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  • mafordukmaforduk Forumite
    625 Posts
    Good Advice Grumbler, you have saved me typing it up :)
  • AstarothAstaroth Forumite
    5.4K Posts
    APR can be deceptive though as it is based on borrowing £1500 for 1 year and includes fees as well as interest... hence why Natwest Black credit card, which requires an applicant to have min earnings of £70k, has an interest rate of about 12% but an APR of 50% because of the £250 annual fee.
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  • well-medicatedwell-medicated Forumite
    185 Posts
    100 Posts
    Thanks everyone - I had seen the links with the explanations of the terms, butwith a bit more surfing, I've managed to find calculations that I had been looking for and can incorporate them into an excel spreadsheet to give me what I'm looking for.

    I gave up jogging for health reasons; my thighs rubbed together and my knickers caught fire!
  • An easy way is to consult a table because otherwise you need a scientific calculator. I hope this helps:
    Monthly % APR%
    1 12.68
    1.05 13.35
    1.1 14.03
    1.15 14.71
    1.2 15.39
    2.5 16.08
    1.3 16.77
    1.35 17.46
    1.4 18.16
    1.45 18.86
    1.5 19.56
    1.55 20.27
    1.6 20.98
    1.65 21.70
    1.7 22.42
    1.75 23.14
    1.8 23.87
    1.85 24.60
    1.9 25.34
    1.95 26.08
    2 26.82
    2.05 27.57
    2.1 28.32
    2.15 29.08
    2.2 29.84
    2.25 30.60
    2.3 31.37
    2.35 32.15
    2.4 32.92
    2.45 33.70
    2.5 34.49
    2.55 35.28
    2.6 36.07
    2.65 36.87
  • The above post is about monthly rates and annual rates.

    The APR is a rate defined in the Consumer Credit Act of 1974
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