What is an APR calculator?
If you’ve been shopping around for loans, you must be familiar with the term APR or AnnualPercentage Rate. An APR is an overall interest that consolidates fees and charges alongwith the interest rate on your loan. While interest rate gives you a monthly account of the money charged on your loan, an APR is calculated over a whole year. Ideally, an APR calculator will need your Loan amount, Finance charges, Loan term, and Interest rate topropose a figure.
APR is a measure through which you can compare different loans. Since APR includes alloverhead charges other than interest, you can compare loan offers to find one with the minimum fee. Some loans may have similar interest rates, but different APR . So while choosing your lender, find one who offers you the minimum APR.