VIVA Personal Finance Blog

How do I calculate APR on a loan?

Updated: Aug 17

Annual Percentage Rate (APR) is the yearly interest that is charged to borrowers, including all fees and other costs. APR is commonly used because it provides a consistent basis for presenting the annual cost to a consumer. APR does not take into account the compounding effect of interest where it applies.

APR = ((Interest + Fees / Loan Amount) / Number of days in loan term)) x 365 x 100

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