Estimate a cash-flow APR when up-front fees reduce the money you actually receive on a loan.
| APR (%) | – |
| Monthly P&I | – |
Use this APR calculator when a loan quotes a nominal rate but charges fees at origination, so you receive less than the face principal while still paying the full amortising instalment. It is a cash-flow sketch, not the legal US finance-charge APR or the EU TAEG, which can treat compounding, insurance, and fees differently.
Monthly payment is the ordinary amortising P&I on the face principal at the nominal annual rate ÷ 12. APR is then 12 × the monthly IRR of the stream: you receive net proceeds (principal − fees) at t = 0 and pay that monthly instalment for years × 12 months.
Up-front fees: Origination fees subtracted from what you receive. They cannot consume the whole principal.
Face principal: The loan amount used to compute the monthly payment.
Nominal annual (%): The quoted yearly rate, e.g. 6 for 6%.
Years: Term in years.
APR (%): Twelve times the monthly internal rate of return of that stream.
Monthly P&I: The level principal-and-interest payment.
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