Interactive APR (Annual Percentage Rate) Calculator

The APR is the actual yearly interest rate paid by a borrower, figuring in the points charged to initiate the loan and other costs.

Calculate actual interest rate you are paying due to additional cost of loan

Principal * ($)

Amount of money borrowed

Additional Cost ($)

Processing fee, bond fee etc

Interest Rate * (%)

Percentage of interest paid annually on principal

No of Months *

No. of months over which you will repay this loan

Here is a short example of how to calculate the APR and see how it differs from normal interest rates:
Loan Amount (P) =	$100
Additional Cost (E) =	$5
Interest Rate (I) =	12%
Monthly Interest Rate (r) =	R/100*12=0.01
Number of month (n) =	1
Now, applying Newton-Raphson Method, we get an APR (A) =0.0605*1200=72.60%
From the above calculation, we see that for a loan amount of $100 with 12% interest, the APR can be as high as 72.60%, depending upon the extra costs and the time taken for repayment.