APR calculator (true cost of credit)
The real annual percentage rate of a loan or instalment plan, fees included.
How it works
We solve for the monthly rate r where amount − fees = Σ payment / (1 + r)^k, then APR = (1 + r)^12 − 1 (EU actuarial method).
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Amount financed1500
- Monthly payment135
- Number of payments12
- Upfront fees25
you get:
- APR19.18 %
- Total cost of credit€145.00
- Total repaid€1,645.00
- Equivalent monthly rate1.473 %
Frequently asked questions
How does the “APR calculator” tool work?
We solve for the monthly rate r where amount − fees = Σ payment / (1 + r)^k, then APR = (1 + r)^12 − 1 (EU actuarial method).
What do I need to enter?
Just fill in: amount financed, monthly payment, number of payments, upfront fees. The result updates as you type.
Can you give an example?
Amount financed: 1500; Monthly payment: 135; Number of payments: 12; Upfront fees: 25 → APR: 19.18 %; Total cost of credit: €145.00.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.