Loan & APR Reality Checker
A quoted rate is not what a loan costs. Fees come out of what you receive but not out of what you repay, so a "low rate" loan with heavy fees can easily be the more expensive one.
How this compares
How the true rate is worked out
The monthly payment comes from the stated rate and the full loan amount, using the standard amortising formula:
payment = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]
But you do not receive P. Fees come out first, so you receive P − fees while still repaying the full schedule. The true rate is the one that makes those payments, discounted back, equal what actually reached you. There is no closed form for it, so it is solved numerically.
Educational content only, not financial advice. Typical-rate ranges are broad guides, not quotes, and the rate you are offered depends on your credit and circumstances. Consult a qualified professional before making financial decisions.