Financial Tool

Basic APR Calculator

Calculate the APR for short-term loans, payday loans, or simple fee-based credit.

Principal ($)

Total Fees ($)

Days

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 is specifically designed for short-term or "fee-based" loans where interest isn't compounded over years, but rather charged as a flat fee for a brief period (typically 7 to 30 days).

While a fee of "$15 per $100 borrowed" might sound small, when annualized, it reveals a much higher cost of credit. This tool helps reveal that underlying annual rate, which is the standard way to compare the cost of different types of credit across the financial industry.

This is particularly useful for evaluating payday loans, title loans, or overdraft protection fees.

How To Use

Enter the **Loan Amount** you are receiving.
Enter the total **Fees** (interest + processing costs).
Enter the **Loan Term** in days.
The result shows the equivalent annual percentage rate.

Frequently Asked Questions

Why is the APR so high on short-term loans?+

APR annualizes the cost of the loan. Because the term is very short, the daily cost of the money is high. If you borrowed that same amount at that same daily rate for an entire year, you would pay back many times the original principal.

Is this the same as the APY?+

No. APR does not account for the effects of compounding interest during the year, whereas APY (Annual Percentage Yield) does. For most simple payday loans, APR is the standard disclosure.

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.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

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