APR / true cost of fees
See how an upfront fee raises the effective yearly cost versus the headline interest rate — useful when comparing offers.
LoanCalc Lab editorial · Methodology: reducing-balance EMI / amortisation with disclosed assumptions (fees optional where shown) · Last checked:
Your inputs
Results
Monthly payment
£243.66
Cash you receive
£9,701
Headline rate
7.90%
Effective APR (illustrative)
9.49%
APR uplift from fees
1.59%
Fee as % of loan
2.99%
Total repayable (payments only)
£11,696
Most people next
Illustrative only — not personalised financial advice and not a credit offer. Rates, fees and terms vary by lender and country. Check the lender’s disclosure before you borrow. Full calculator disclaimer.
Equations & assumptions
Cash received = principal − upfront fee. Find monthly rate m such that the present value of the payment stream equals cash received; effective APR ≈ m × 12 × 100.
- Capital-and-interest reducing balance; monthly rate = APR ÷ 12. Representative APR on UK credit ads may include fees — we model fees separately unless stated.
- Single upfront fee only; ongoing fees not modelled.
- Fee paid separately (not added to principal) unless you change the loan amount.
Notes & FAQs
- Is this the same as a regulated APR?
- No. It is an illustrative effective rate that treats the fee as reducing cash received while payments amortise the full principal. Local APR rules (UK, AU comparison rate, etc.) can differ — always read the lender disclosure.