Fixed APRs remain constant for the life of the loan or the credit card. Variable APRs can fluctuate daily, leaving the debtor in the dark about how much interest she’s paying. Be very careful with variable APR. [4] X Research source Tiered APRs depend on what tier the debt falls into, raising and lowering depending on your current debt. For example, your APR might be 4% for debts below $1,000, but raise to 7% if you cross $1,000. [5] X Research source
FinanceChargesCurrentBalance∗12months∗100=APR%{\displaystyle {\frac {FinanceCharges}{CurrentBalance}}12months100=APR%} You should end up with a decimal before multiplying by 100. This final step converts the decimal into a percentage, making it easier to read.
This does not have be the current month’s charges only. APR is calculated on your entire balance, so just use that number.
This charge will change from month to month.
This charge will change from month to month.
$25$2,500=0. 01{\displaystyle {\frac {$25}{$2,500}}=0. 01}
0. 01∗100=1%{\displaystyle 0. 01*100=1%}
1%∗12={\displaystyle 1%*12=}12%{\displaystyle 12%}
Principal, or Loan Term or Length Interest Fees (Optional)
Mortgages are simply specific loans on houses.
The APR of our hypothetical mortgage would be 6. 37%. The monthly principal and interest payment would be $1,847. The total cost of the interest on the mortgage would add up to $364,975, making the total cost of the mortgage a whopping $664,920.
