Calculating APR - Part 3

We’ve covered some basics on how you can calculate APR. In this part – the last part of discussing APR calculation – we are going to talk about several online resources you can use to help you find more information on APR and APR calculation.

The first place to start is of course Office of Fair Trading, an institution regulating lenders and trade institutions. According to Consumer Credit Act 1974, you can ask your lender to provide truthful APR calculation for any loan you are engaging. Several basics of calculating APR can also be found at the Office of Fair Trade’s online resource center.

You can also find a very reliable calculator at efunda.com. Although the main currency used on the calculator is US$, the principles used are similar for UK lenders and loan deals. Simply use the available calculators to help you crunch some numbers and find the best loans to get. Bear in mind that US-based calculators only calculate what in the UK is considered nominal annual rate.

Last but not least, make sure to use Office of Fair Trade’s online calculator before you make the final decision. It can help you produce accurate results in no time, helping you with comparing loans.