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**APR calculator**s are the best digital tech software tools to use in order to get Annual Percentage Rates. Their services can be applied in calculating mortgages and various other types of loans.

Annual percentage Rates can be described as the figure derived from a loan’s sliding scale in order to give you a figure amounting to monthly payments. Below is a good example that you can try out on your **Annual Percentage Rate Calculator** once you’ve successfully installed it into your system.

*Example *

Person X takes $1,000 loan from a bank that comes with a 3% APR for the next three years

1^{st} Year of Interest: 1,000 x 0.03 = 30 + 1,000 = 1,030

2^{nd} Year of interest: 1,030 x 0.03 = 30.9 + 1,030 = 1,061

3^{rd} Year of interest: 1,061 x 0.03 = 31.83 + 1,061 = 1,092.83

The total payment that person X is required to pay in the long run comes to $1,092.83

The above calculation is manual and might be hard for some to assimilate especially if you are not that good with numbers. This is where the **Annual Percentage Rate Calculator** comes in. It’ll save you all the trouble of memorizing the formulae and mathematical process above. All you have to do is just input the figures and you’ll get the answer.

The one thing that you must bear in mind is that the **APR calculator** won’t do everything for you. You need to have basic knowledge in mathematics otherwise there is the possibility of getting the wrong output. You have to be able to differentiate between different types of interest rates whether they are simple or compound. You can’t input the principal as an interest rate and expect the calculator to rectify this for you. It’ll only give you feedback related to what you feed it or key in.

The software comes with a help section that can give you a hand in case you are having problems working out certain percentages. Other features present include

- APR calculation formulas
- Loan Amortization Calculation
- Car Loan payment calculator
- Payment option ARM loans
- Monthly Mortgage Interest calculation

You can get a tutor to give you a few lessons about loans and interest rates. In general, the APR should depict your true cost of borrowing. The true cost should be inclusive of additional costs incurred such as processing fee, points, interest rate charged and insurance fee. You’ll be able to calculate all this using this software. The calculator encapsulates this APR formulae that might be very complex. The formulae is

= **[(a + (P x d))/ (P – a – (P x d))] x 10 + r**

__Key__

P = Principal

a = Additional Cost

d = Discount

r = Interest Rate

The above letters shown in the key are the contents that will help you arrive at the final answer. You need to know each one of them and input them into the calculator so that you will get the correct answer. To further expound, additional costs can include things such as

- Title fee

- Application fee
- Mortgage Insurance
- Underwriting fee
- Pre-paid Interest rates
- Document preparation fee

.