Determining Annual Percentage Rate (APR) With a Hand Calculator

December 7, 2004, Reviewed January 7, 2008, August 25, 2010, February 5, 2011

The APR on a fixed-rate mortgage can be calculated on an inexpensive financial calculator quite easily.

Assume the loan amount is $100,000, term 360 months, rate 6%, and APR fees $2,000.

1. Enter: -100000 in PV, 360 in N, 6 in I/Yr and 0 in FV.

2. Solve for PMT = 604.4236.

3. Round PMT up to 604.43, enter this number in PMT.

4. Enter loan amount less APR fees in PV as -98000.

5. Solve for I/Yr = 6.266. This is the APR.

It is even easier using one of the three APR calculators on this site, which allow you to calculate the APR on adjustable rate mortgages as well as on fixed-rate mortgages.

 

Want to shop for a mortgage on a level playing field?

Why Shop for a Mortgage with the Professor?

  1. Receive His Help in Finding the Type of Mortgage That Best Meets Your Needs
  2. Shop Prices Posted Directly by His Certified Lenders
  3. Shop Prices Fully Adjusted to Your Deal
  4. Shop Prices That Are Always Current
  5. Get Him as Your Ombudsman Just in Case

Read More About the Support and Protections Listed Above

Sign up with your email address to receive new article notifications


Search