Calculate the APR of a loan (mortgage or personal)
This simulator calculates the APR of a loan (mortgage or personal) based on the amount of the loan, nominal interest rate, repayment term, fees, and the payment protection insurance premium, should this product be mandatory.
This simulator is valid for those loans in which the fees and expenses taken into account to calculate the annual percentage rate (APR or TAE from the Spanish initials) of the loan are paid either when the loan is arranged or on a regular basis.
This simulator is based on the assumption that the loan repayment is carried out using the so called ‘French system’ (equal monthly payments) and that the proportion of the monthly payment corresponding to interest is calculated with the following formula:
(Outstanding capital x nominal annual rate) / 1200.
Calculations have been simplified as follows so that the simulator can be used with as many cases as possible:
- It is considered that the customer pays all the assessment, granting and arrangement costs on the date the loan contract is signed
- Instalments are paid on a monthly basis
- Every month of the year has the same number of days
- There are no grace periods and the first payment is made exactly one month after the loan is granted
The instructions to calculate the annual percentage rate can be found in the thirteenth rule of Circular 5/2012, de 27 de junioAbre en ventana nueva.