Financial Tool
Basic APR Calculator
Calculate the APR for short-term loans, payday loans, or simple fee-based credit.
Σ The Formula
APR = (Fees / Principal / Days) × 365 × 100
Real World Examples
Payday Loan
$500 loan with $75 fee for 14 days → 391.07% APR
Short Term Cash
$1,000 with $50 fee for 30 days → 60.83% APR
# About This Calculator
The Basic APR Calculator reveals the true annual cost of short-term lending. APR (Annual Percentage Rate) is the gold standard for comparing different credit offers because it annualizes the cost of borrowing, including both interest and fees.
Why calculating APR matters:
Short-term loans often advertise low "fees" instead of interest rates. A $15 fee on a $100 loan sounds cheap, but if you have to pay it back in 2 weeks, that's equivalent to an APR of almost 400%. This calculator exposes that reality.
Formula Used:APR = ((Fees + Interest) / Principal / Days) × 365 × 100
How To Use
- Enter the **Loan Amount** (Principal).
- Enter the total **Fees/Finance Charges** (e.g., origination fee, interest, or "tipping" fees).
- Enter the **Loan Term** in days (e.g., 14 for a typical payday loan).
- The result shows the **Annual Percentage Rate**.
Frequently Asked Questions
Why is the APR so high?+
Short-term loans have high APRs because you're paying a flat fee for a very short borrowing period. APR assumes you would keep paying that rate for a whole year. This metric is designed to shock you into understanding the expense relative to traditional credit like a credit card (15-25% APR).
Does this affect my credit score?+
Calculating APR here does not. However, taking out payday or high-interest loans helps your score only if the lender reports positive payments to bureaus (many do not), but defaults can definitely hurt it.
Is APR the same as Interest Rate?+
No. The Interest Rate is just the cost of borrowing the principal. APR includes the interest rate PLUS other fees (origination, closing costs, etc.) expressed as an annual percentage. It is always higher than the simple interest rate.
Is Basic APR Calculator free to use?+
Yes, Basic APR Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.
How accurate is Basic APR Calculator?+
We use standard mathematical formulas and high-precision computing algorithms to ensure results for Basic APR Calculator are accurate for academic and professional use.
Can I use Basic APR Calculator on my phone?+
Yes! Basic APR Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.