What this calculator helps you do
Estimate the annualized borrowing rate after considering upfront fees and the scheduled payment stream. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—loan amount of $20,000, stated annual rate of 8%, term of 48 months, upfront fees of $600—the calculator returns estimated apr of 9.59%; monthly payment: $488.26; net proceeds: $19,400.00. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
APR is most useful when offers have similar terms and cash-flow timing. It can reveal that a lower advertised rate is not always the cheaper offer after fees.
Common mistakes to avoid
- Treating this educational estimate as a legally compliant disclosure.
- Entering recurring charges as one-time fees.
- Comparing APRs for loans with very different repayment periods without also checking total cost.
Limits and assumptions
Legal APR definitions and included charges vary by jurisdiction and product. This estimate uses the entered net proceeds and scheduled monthly cash flows.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Why is APR higher than the interest rate?
Upfront fees reduce the net amount received while scheduled payments remain based on the loan, increasing the effective annualized cost.
Is this a legal disclosure APR?
No. Use the lender’s regulated disclosure for contractual decisions.
Can APR be lower than the stated rate?
It is unusual with positive fees, but unusual cash-flow timing, credits, or inconsistent inputs can change the result.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.