How to calculate the APR on a credit card

samuel.s

I have a Virgin credit card and knowhere on the statement does it state the annual precentage rate. Does anyone know the formula for calculating?
Currently the monthly interest rate is 2.2071%
I am just trying to do a more accurate SOA but need the annual APR for my calculations.
Many thanks in advance.

CLAPTON

its about 29.95% apr

the formula is if M = monthly rate then

APR = (1+M)^12 - 1

multiplying by 13 gives an approximate answer

samuel.s

No wonder they do not state their apr on the statement. I did not realize it was so high. Many thanks for the information, much appreciated.

Fruit_and_Nut_Case

For future reference, there's a converter here.

Consumerist

CLAPTON wrote: »

. . . the formula is if M = monthly rate then APR = (1+M)^12 - 1

Just to clarify the formula by CLAPTON, M = Monthly Rate (%) / 100.

The % APR will be 100 times the result given by the formula.

So at 2.2071% per month,

APR/100 = 1.022071^12 - 1 = 0.29947..... to give an APR of 29.95% to 2 decimal places.

CLAPTON

Consumerist wrote: »

Just to clarify the formula by CLAPTON, M = Monthly Rate (%) / 100.

The % APR will be 100 times the result given by the formula.

So at 2.2071% per month,

APR/100 = 1.022071^12 - 1 = 0.29947..... to give an APR of 29.95% to 2 decimal places.

thank you but it all depends upon the what you mean by the values

so, in fact,
2.2071% means 0.22071
so if you divide by 100 you get 0.002071 which doesn't give the right answer

but I'm sure we agree really

Consumerist

CLAPTON wrote: »

. . . but I'm sure we agree really

Quite so. It was only supposed to be a clarification (with example), not a contradiction.

jaygomez

So a monthly rate of 3.5% is equals to almost 51% APR?

CLAPTON

jaygomez wrote: »

So a monthly rate of 3.5% is equals to almost 51% APR?

yes indeed (doubtless why they prefer to highlight the monthly figure)