This calculator assumes that interest is compounded monthly.
The nominal rate of interest applied.
Note: These calculations are only for illustrative purposes and are not a substitute for professional advice.
Need assistance? Connect with our Accounting Experts today!
Annual Percentage Rate (APR) is a standardised way to measure the cost of borrowing money. It represents the yearly cost of a loan or credit, expressed as a percentage, and includes not just the interest rate but also any additional fees or charges. By factoring in these extras, APR gives you a clearer picture of how much you’ll actually pay for borrowing over the course of a year. This transparency makes it easier to compare financial products like loans, credit cards, and mortgages.
Understanding APR helps you make informed financial decisions by allowing you to evaluate the true cost of borrowing across different lenders. For example, a loan with a lower interest rate but higher fees could end up costing more overall than a loan with a slightly higher interest rate and no fees. Knowing the APR ensures you aren’t misled by promotional rates or hidden costs, empowering you to choose the option that best fits your needs and budget.
Get started with the right online accounting service for your UK small business
More related Accounting Community, News & Resources
https://a-wise.co.uk/wp-content/uploads/2026/01/Accounting-Wise-10-Benefits-of-Hiring-A-Small-Business-Accountant.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2026-01-12 07:23:222026-01-12 09:02:5110 Benefits of Hiring A Small Business Accountant
https://a-wise.co.uk/wp-content/uploads/2026/01/Accounting-Wise-common-self-assessment-mistakes-to-avoid.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2026-01-09 07:19:352025-12-15 16:57:30Common Self Assessment Mistakes to Avoid
https://a-wise.co.uk/wp-content/uploads/2025/12/Accounting-Wise-What-is-Double-Entry-Bookkeeping.webp 423 1600 Daniel Greenaway https://a-wise.co.uk/wp-content/uploads/2024/11/Accounting-Wise-Logo-Uk-Online-Accountant.webp Daniel Greenaway2026-01-05 07:03:162026-01-05 09:08:47What is Double Entry Bookkeeping
Free company formation with our Pre-Built or Bespoke Accounting packages!
All Official Documents
Manage Your Company Online
London Registered Office Address
Your own limited company
Whatever your size, our accounting software supports your business.
Quotes & Payment Reminders
MTD VAT & CIS Returns
Payroll Services & HR Support
Unlimited Support & Advice
