Fees on secured loans
Secured loans often carry broker and lender fees, sometimes added to the loan. Working out the APR shows their real effect.
The calculator finds the monthly rate at which your payments exactly repay the amount borrowed after fees, then converts it to an annual percentage rate.
Worked example
A £40,000 loan repaid at £474.81 a month for 10 years, with a £500 fee, has an APR of 8.1%.
Before you borrow
Secured borrowing puts your home at risk if you cannot keep up repayments, so compare the APR and total repayable before you accept.
What this calculator assumes
The APR is worked out from the amount borrowed, the upfront fees you enter, the monthly payment and the term, assuming equal monthly payments throughout. It does not model fees charged later or a variable rate.
It leaves out early repayment charges, valuation or legal costs you pay separately and changes to your payment, so use it to compare offers on a like-for-like basis.
Inputs for the home equity loan APR calculator
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many years the payments last.
CALCULATOR QUESTIONS
Home equity loan APR calculator questions
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.
Are fees common on secured loans?
Yes, broker and lender fees are common. Include them to see the true APR.
What if fees are added to the loan?
Enter the amount you receive plus the fee as the amount borrowed, and the fee as an upfront fee.
What's the risk?
Because the loan is secured on your home, missing payments can lead to repossession. Compare APRs across several offers.