How to calculate APR

scooterpig

Apologies if this is the wrong forum, but you folk always seem to have all the answers and there's definitely some numerical whizzkids on here!

Can anyone give me a rough and ready calculation for APR? It doesn't have to be exact, just a reasonable indication. I'm just trying to work out how best to fund a couple of major purchases over the next few months, and am trying to get an idea of how much the interest will be each month if I pay them on a credit card.

Thanks!

oscar52

As a rough guide, you can multiply the monthly interest rate by 13 - although there are 12 months in a year, most work on a cycle of 28 days making 13 months.

It isnt exact, but would be close enough for a comparison between lenders.

Dr_Hook

I was trying to figure this out a while ago, looked up the formula on google and made myself this spreadsheet (clicky).

Once you've entered the APR it'll give you the monthly rate; multiply this by the balance to find out the monthly interest charge. Bear in mind it won't be exact, especially if checking credit cards, as nuances such as at which point in the month interest is calculated and whether it is charged from the statement date or the date of the transaction make a difference. It should give a fairly close estimation though.