Comprehensive Calculator Guide
📋Overview
The APR Calculator helps you understand the true cost of a loan including all fees and interest. It is one of the most important tools for comparing different loan offers and making an informed financial decision.
🎯How to Use
- Enter the principal loan amount
- Specify the nominal interest rate
- Enter all additional fees
- Calculate the Annual Percentage Rate (APR)
🔢Formula Used
APR = [(Interest + Fees) / Principal / Number of Years] × 100💡Practical Examples
Example: Car Loan
Loan of 100,000 SAR at 5% interest and 2,000 SAR fees for 5 years, the actual APR will be higher than 5%.
❓Frequently Asked Questions
Q:What is the difference between APR and interest rate?
A: The interest rate calculates interest only, while APR includes all costs and fees associated with the loan.
Q:Why is APR important?
A: It helps you compare different offers fairly and know the true cost of borrowing.