The second step is to calculate what interest rate produces a monthly payment equal to the APR payment amount. In this case, we calculate the interest rate that would require a LOAN_APR_PAYMENT monthly payment on a loan of TERM years in the amount of LOAN_AMOUNT. The result is LOAN_APR which is the APR for your loan.
Note: It is important to point out that the APR for a loan with no fees is always the same as the stated interest rate. If you have a loan where the lender pays you for taking a higher interest rate, your APR for that loan may be lower than the stated interest rate.
|Monthly payment (PI)||MONTHLY_PI|
|Total principal and interest payments||TOTAL_OF_PAYMENTS|
|Paid for points||DISCOUNT_POINTS_AMT|
|Total closing costs||TOTAL_CLOSING_COSTS|
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