How do I work out APR's from Monthly Interest Rates

Can anyone please tell me how I work out an APR from a monthly interest rate.

I have two I need to calculate:-

MIR - 2.0084%

MIR - 1.527%

If anyone can help it would be gratefully appreciated.

Ta:eek:
My Debt was at LB - £7k - NOW

Loan from Parents - 0% - £2,000.00

Hubby's Debts

Egg CC - 16.9% - [STRIKE]£5,373.93 [/STRIKE]- 5th Jan - £0 - PAID OFF
Natwest CC - 17.9% - [STRIKE]£2,192.87[/STRIKE] - 5th Jan - £0 - PAID OFF
MBNA CC - 24% - [STRIKE]£1,457.08 [/STRIKE]- 5th Jan - £0 - PAID OFF
HSBC CC - 0% until April 09 - £1,330

A&L Loan (awiting balance owing) - due to be paid off March 08

Facing up to OUR problems and dealing with them at last!!!!

Comments

  • lynzpower
    lynzpower Posts: 25,311
    Combo Breaker First Post
    Forumite
    I expect you multiply by 12, but im not 100%

    Id simply call them up, ask, then ask them to lower them while you are on the line ;)
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • sgx.saint
    sgx.saint Posts: 1,615
    First Post First Anniversary Combo Breaker
    Forumite
    I could be having a blonde moment, but surely just multiply by 12?

    So ....

    MIR 1.527 = 18.324% - APR
    MIR 2.0084 = 24.1% - APR
  • oscar52
    oscar52 Posts: 2,272 Forumite
    It doesnt quite work ...... and i cant remember how it does ..... have a feeling its something to do with the statement / cycle dates, but i cant remember.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • sgx.saint
    sgx.saint Posts: 1,615
    First Post First Anniversary Combo Breaker
    Forumite
    I agree interest is a very funny thing. I used to work for Barclaycard and when we received our initial training 3 weeks was dedicated to learning how interest worked in relation to credit cards.

    As you can see the training paid off lol, I can't remember how you extrapulate the APR from the monthly figures :)
  • CLAPTON
    CLAPTON Posts: 41,865
    Combo Breaker First Post
    Forumite
    the correct formula to convert a monthly interest rate m to a APR is as follows

    expresss m as a decimal so 2% is 0.02

    APR = ((1+m) to the power of 12)-1

    but multiplying by 13 gives a pretty good approximation and is a lot easier

    so 2.0084 per month is APR of 26.95% (multiplying 13 gives 26.11%)
    and 1.527 per month is APR of 19.4% (multiplying by 13 gives 19.85%)


    in fact multiplying by 12 isn't too bad but it doesn't make any allowance for compound interest.
  • Thanks - I did'nt even think about multiplying by 12 - thick or what - I'm blaming the pregnancy!!!!

    I would phone up but they are on hubby's CC's and hes having an ostrich moment (burying his head in the sand!!!)
    My Debt was at LB - £7k - NOW

    Loan from Parents - 0% - £2,000.00

    Hubby's Debts

    Egg CC - 16.9% - [STRIKE]£5,373.93 [/STRIKE]- 5th Jan - £0 - PAID OFF
    Natwest CC - 17.9% - [STRIKE]£2,192.87[/STRIKE] - 5th Jan - £0 - PAID OFF
    MBNA CC - 24% - [STRIKE]£1,457.08 [/STRIKE]- 5th Jan - £0 - PAID OFF
    HSBC CC - 0% until April 09 - £1,330

    A&L Loan (awiting balance owing) - due to be paid off March 08

    Facing up to OUR problems and dealing with them at last!!!!
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.2K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards