Loan Calculator from Rate
This is an example of a loan calculation using the entered rate to calculate the required repayment schedule.
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Enter your figures and calculate.
Overview
This calculator works backwards from a rate to the repayments. Where the standard loan calculator starts from a flat rate, here you enter the rate in whichever form you have it — an APR, an annual nominal rate, a monthly period rate (MPR) or a flat rate — and the calculator solves for the instalment that reproduces it. It then reports the repayments, the implied flat rate, the total charge for credit, the true APR and a full month-by-month amortisation schedule you can download.
It is useful when a lender quotes a headline rate and you want to see the actual payments, or when you need to convert between rate conventions. Because arrangement and option fees affect the real cost, the APR it reports can differ from the rate you entered — a spread arrangement fee, for instance, raises the effective APR above the quoted rate.
How it works
Cash price, deposit and part-exchange, the term in months, and the rate together with its type (APR, annual, MPR or flat). Add fees or a balloon if present.
The entered rate is converted to an APR, then the instalment that discounts the repayments back to the amount of credit at that rate is found by iteration.
You get the instalments, the implied flat rate, the total charge for credit, the recomputed APR (including fees) and a downloadable amortisation table.
Worked example
£8,500 of credit over 36 months at 9.9% APR
Finance a £10,000 purchase with a £1,000 deposit and a £500 part-exchange — £8,500 of credit — over 36 months at a 9.9% APR, with a £200 arrangement fee spread across the payments and a £50 option-to-purchase fee. The calculator returns a first instalment of £277.75, a total charge for credit of £1,299.00 and a total amount payable of £11,549.00.
The implied flat rate is 5.094%, and the reported APR rises to 11.7% — above the 9.9% you entered — because the arrangement and option fees add to the cost of the credit.