Calculating apr

well-medicated

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?

WM

grumbler

well-medicated wrote:

..Or am I talking nonsense?...

Yes IMHO. Sorry
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).

maforduk

Good Advice Grumbler, you have saved me typing it up

Astaroth

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.

well-medicated

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.

WM

david_hellier

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

Robert_Sterling

The above post is about monthly rates and annual rates.

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