Question 1

Is this the same as lender APR?

Accepted Answer

Not necessarily. Official APR can include specific fees, compounding conventions, and day-count rules. This estimator focuses on interest annualization math.

Question 2

What if interest compounds?

Accepted Answer

Compounding can change the effective annual cost. If compounding is significant, an APY or effective rate approach may be more appropriate.

Question 3

Should I include fees?

Accepted Answer

If you want a closer approximation, include fees in the interest-like total you input so the annualization reflects the full cost.

APR Calculator

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