Flat rate to APR calculator
Turn a loan's flat interest rate into its real APR, and see the monthly payment and total interest, so you can compare it fairly with other loans. Free, no sign-up, nothing leaves your browser.
This assumes equal monthly payments and no fees. A lender's quoted APR also includes any fees you must pay, so it may be higher.
What a flat rate is
With a flat rate, interest is worked out on the full amount you borrowed for the whole term, even though you pay some of it back every month. Borrow 1,000 at a 10% flat rate for a year and you pay 100 in interest, although on average you only owed about half the money.
Why the APR is higher
An APR works out interest on what you still owe, so it lets you compare loans fairly. Because a flat rate charges interest on money you've already repaid, its APR is usually close to double the flat rate. Always compare loans on their APR, and check for fees as well.
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