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UK Calculators

APR Calculator

Estimate an effective annual percentage rate from equal monthly repayments and an upfront fee.

Last reviewed

APR Calculator

Estimated effective APR

8.25%

Payments plus upfront fee£11,260.00
Total borrowing cost£1,260.00

Reading the result

First payment is one month after advance; all later payments are equally spaced and identical. The fee is paid upfront, not financed.

How it works

A numerical solver finds the monthly discount rate that equates repayments to the amount advanced less the upfront fee. That rate is compounded for twelve months.

Worked examples

Worked example

Amount borrowed before upfront fee (£): 10000; Upfront fee (£): 100; Monthly repayment (£): 310; Number of monthly payments: 36

  1. A numerical solver finds the monthly discount rate that equates repayments to the amount advanced less the upfront fee. That rate is compounded for twelve months.
  2. Payments plus upfront fee: £11,260.00
  3. Total borrowing cost: £1,260.00

Estimated effective APR: 8.25%

Assumptions

The result depends on the following. If any of them do not match your situation, treat the figure as indicative only.

  • First payment is one month after advance; all later payments are equally spaced and identical. The fee is paid upfront, not financed.

What this calculator does not do

  • Illustrative cash-flow APR, not a regulatory disclosure. Excludes irregular dates, balloon payments, contingent fees and statutory assumptions for complex agreements.

Methodology

A numerical solver finds the monthly discount rate that equates repayments to the amount advanced less the upfront fee. That rate is compounded for twelve months.

Inputs are processed locally. Displayed amounts are rounded; the calculation retains precision.

Frequently asked questions

Why can APR exceed the interest rate?

Upfront costs reduce the usable amount received and compounding affects annual cost, so APR can exceed the quoted nominal rate.

What if the fee is added to the loan?

This model assumes an upfront fee. Use the actual net advance and schedule with a suitable adviser or lender illustration for financed charges.

Please note: Results are estimates for general information only and are not financial, tax or legal advice. Figures depend on the assumptions listed on each page and on your personal circumstances.

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