APR vs Flat Rate Calculator
Enter the amount, flat rate, term and any fee to see the effective APR.
Effective APR
β
Enter values above
Monthly payment
β
Flat interest charge
β
Total repayable
β
Interest as % of loan
β
Monthly payment per $1,000 borrowed
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Loan amount ($) | 10000 |
| Flat rate (% per year) | 6 |
| Term (months) | 36 |
| Arrangement fee ($) | 0 |
| Result | Value |
|---|---|
| Effective APR | 11.66% |
| Monthly payment | $327.78 |
| Flat interest charge | $1,800.00 |
| Total repayable | $11,800.00 |
| Interest as % of loan | 18.00% |
| Monthly payment per $1,000 borrowed | $32.78 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the APR vs Flat Rate Calculator
- Loan amount ($) β default 10000
- Flat rate (% per year) β default 6
- Term (months) β default 36
- Arrangement fee ($) β default 0
- Press Calculate to update the results instantly.
Frequently asked questions
A flat rate charges interest on the full amount for the whole term, even though you repay the balance steadily. Because the average outstanding balance is about half the loan, the true annual cost is around twice the quoted flat rate.
Yes. Fees are deducted from the money you actually receive, so they must be included β which is why a modest fee can push the APR up sharply on a small, short loan.
The interest rate applies to the balance; the APR expresses the total cost of borrowing as an annual rate, including fees, so it is the only fair way to compare products.