APR is an abbreviation for annual percentage rate. The rate is used to approximate the cost of credit per annum. APR is a way of comparing the costs incurred on loans over a given period. The rate enables a person to compare two finance options as it considers the total fees levied on each loan. Although the comparison may not be absolute, it gives a person a good percentage cost of different loan packages. A loan calculator enables a person to calculate the APR value for different loans.
Loan Calculator Work out Your APR
The loan works by using the standard compound interest amortization formula. This formula enables a person to calculate the interest accrued on a loan during a given period. It computes the loan monthly repayments, the final amount payable on a loan, and total interest rate payable on a loan.
A person must enter the payback period of the loan on the calculator. The period should be in months. Then he should key in the amount he intends to borrow, and the APR issued by the financial lending institution. The APR must include the total cost of credit, administrator’s fees, and any additional charges. Although the calculator does not cater for the costs and charges, it gives a correct final amount payable on the loan.
Loan Calculator Work out Your APR Online
There are free loan calculators a person can use on the internet. There is no need to download the calculator on a PC to use it. A person can easily submit the required information pertaining a loan on the online loan calculator. The calculations by the loan calculator are applicable for debt consolidation loans, and for the UK bank loans. The calculators can also be used when computing student finance loans, secured loans, and unsecured finance loans.
You may find that if you cannot afford your mortgage repayments, you will find yourself in debt. This can lead to various things such as an IVA or bankruptcy. Make sure you are able to afford your repayments to avoid this happening.