What APR includes
APR combines interest and compulsory fees into one yearly rate. Use it to compare quotes with different fee structures.
Using this calculator
Enter the figures from a quote. If the APR here is higher than advertised, ask the lender which fees are included.
Frequently asked questions
Why is my APR higher than the interest rate?
Fees and monthly compounding push the APR above the nominal interest rate.
Is APR useful for short-term loans?
It can look very high on short terms. The total cost in pounds is often more useful.