Finance & Irish taxes · Calculator companion · By K Imports
Loan fee-adjusted APR estimate: practical guide
This guide explains how to use the Count.ie loan fee-adjusted apr estimate. Estimate the effective annual rate when a loan has an upfront fee. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Loan fee-adjusted APR estimate calculatorWhat to prepare
- Have the figures for gross loan amount (€), nominal annual interest (%) and repayment term (months) ready, from a dated document, with the period (annual, monthly or per transaction) that each input expects.
- Note the date of the transaction, since this model has no year selector and fixed rates may have changed.
- Separate known facts from assumed rates before relying on the headline result.
Understand the inputs
The calculation method
Solve the monthly discounted value of repayments against loan cash received, then annualise.
Worked example
Illustrative inputs and their result.
Example inputs
- Gross loan amount (€)
- 10000
- Nominal annual interest (%)
- 6
- Repayment term (months)
- 60
- Fee deducted from drawdown (€)
- 200
Calculated example result
- Effective Annual Percent
- 7.0621%
- Total Borrowing Cost
- €1,799.68
How to interpret the result
Cash-flow estimate, not a statutory APR quotation. Distinguish a tax saving, a tax bill, cash received and money remaining: they are not interchangeable. An estimate does not establish eligibility, filing compliance or when a refund will be paid.
Change one input of loan fee-adjusted apr estimate at a time and record the result; keep a record of the year, date and assumptions so a change in the result can be explained.
Common mistakes to avoid
- Do not mix tax years or apply a newly announced measure to an earlier transaction.
- Avoid counting an allowance, credit, contribution or loss twice.
- Check exclusions and personal circumstances before relying on the headline result.
Assumptions and sources
Cash-flow estimate, not a statutory APR quotation. Exact payment dates and compulsory costs can differ.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.