Find the APR — the real yearly cost of a loan, including fees — so you can compare offers correctly, from the amount, interest rate, term and fees.
Loan and fees
Enter the amount, the nominal annual rate, the term and the fees paid upfront.
APR reflects the real yearly cost, including fees. It is the right figure for comparing offers.
Effective APR = 16.29%Indicative loan figures. The payment uses the annuity formula (fixed rate). The real interest and APR depend on the lender, on the Bank of England base rate and on fees — the figures here are estimates. Instant in-browser calculation, no account. Last updated: 11 July 2026 · Bank of England base rate.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
APR is the rate at which the present value of the payments equals the amount received (loan minus fees), expressed annually:
£10,000 at 9% nominal over 24 months, with £300 of fees: APR ≈ 12.7% (versus 9.38% effective with no fees).
APR (annual percentage rate) expresses a loan's total yearly cost as a percentage, including interest and compulsory fees. It is the single figure to use when comparing two offers like for like.
The interest rate covers only interest; the APR also includes fees and the way interest compounds. That is why the APR is always higher than the interest rate when there are costs.
You find the rate at which the present value of all payments equals the amount actually received (loan minus fees), then express it annually. The calculator solves this equation for you.
Because it includes fees such as an arrangement or product fee and any compulsory insurance. The larger the fees and the shorter the term, the more the APR rises above the interest rate.
Yes. Under FCA rules, advertised consumer credit must quote a representative APR, and mortgages quote an APRC, precisely so offers can be compared fairly.
It is the APR that at least 51% of accepted applicants receive. Your personal APR can be higher depending on your credit score, so the representative figure is a guide, not a guarantee.
It depends on the loan type and current rates. Compare an offer's APR with the market average for the same type of borrowing — the lower, the better.