Loan APR Calculator (UK)
APR reflects the true yearly cost including fees. We solve an IRR on monthly cashflows and annualise it.
Result
Method
- Monthly payment computed from nominal rate r_nom = rate/12 on (principal + financed fees).
- Cashflows for APR IRR: +net advance at t=0 (principal - upfront fees), then -payment each month.
- APR (annual) = (1 + r_apr_month)^12 − 1.