Skip to content
BankSorter BankSorter

APRC calculator

Enter the amount, number of instalments, nominal rate and costs - we calculate an indicative APRC.

Fixed for the whole term. This is not the APRC.

Paid separately when the loan is paid out. Insurance and periodic fees are not included.

The starting values are an example to edit, not a current market offer.

Result

What next?

The calculator works out a hypothetical scenario from your own parameters. See real offers and their terms in the comparison, and the editorial order of offers in the ranking.

Compare offers: personal loan See the ranking and methodology

How to use the APRC calculator

What you can set

You enter the loan amount, the number of instalments (in months), the nominal rate, the commission (an amount or a percentage of the loan amount) and how it is charged, and optionally another one-off cost payable when the loan is paid out. The model calculates equal instalments and a single payout.

Commission added to the loan or charged at the start

A commission added to the loan increases the balance the instalments are calculated on, and you receive the full loan amount. A commission charged at the start (deducted from the payout or paid separately) reduces the amount you actually have available, and the instalments are calculated on the full loan amount. In the example below the same commission gives a higher APRC when it is charged at the start than when it is added to the loan.

Other one-off cost

This is an optional amount paid separately when the loan is paid out, for example an arrangement charge. It raises the APRC because it reduces the amount you really receive. We don't include insurance or periodic fees, so they are not reflected in the result.

Number of instalments

The longer the term, the longer the one-off costs are spread, so the APRC falls. For 20,000 at 12% with a commission of 1,000 added to the loan, the APRC is about 23.59% over 12 instalments, 16.57% over 36 instalments and 15.13% over 60 instalments.

Example: why the APRC is higher than the nominal rate

A loan of 15,000, nominal rate 9%, 24 equal instalments. With no costs the APRC is 9.38%, because interest is charged monthly. With a commission of 750 added to the loan the instalment is 719.53 and the APRC is about 14.83%. With the same commission charged at the start the instalment is 685.27, the amount received is 14,250 and the APRC is about 15.12%.

How the calculator works out the APRC

There is no simple closed-form formula, so we look for the rate numerically (by bisection) until the discounted instalments equal the amount received at the start. This is a simplified, indicative model: equal instalments, a single payout, equal monthly intervals. The APRC in your agreement may differ if it includes other costs or an unusual schedule.

How is this calculated?

APRC is the annual rate X at which the discounted instalments equal the amount the borrower actually receives at the start (the loan amount minus costs charged at the start). Instalments are equal and the intervals are equal months (year = 365 days, month = 1/12 of a year, the convention used in annex 4 to the Polish consumer credit act). There is no closed-form formula, so we find X by bisection; when no solution exists we show a message rather than 0%.

You can add the commission to the loan (the instalments are then calculated on the loan amount plus the commission) or charge it at the start (you receive less, and the instalments are calculated on the full loan amount). We include interest, the commission and one other one-off cost; we don't include insurance or periodic fees. The result is indicative and does not guarantee agreement with your contract.

FAQ

The nominal rate is only part of the cost of a loan. APRC also includes one-off costs such as a commission and converts everything into an annual rate, so it is higher than or equal to the nominal rate. Even with no costs it can be slightly higher, because instalments are paid monthly.
Because banks usually highlight the nominal rate, while the commission and other costs are added separately. APRC shows the total, comparable cost, which is why consumer credit rules generally require it to be stated in loan advertising.
We don't promise that. This is an indicative result for equal instalments and a single payout. We include interest, the commission and one one-off cost; we don't include insurance or periodic fees. The actual APRC in your contract may differ.
For the data you entered there is no solution, or it would come out negative, for example when the costs charged at the start exceed the loan amount. Instead of showing 0% we display a message.