APR and total cost of credit

Sources and assumptions

Calculation assumptions

• This calculator freezes no statutory rate: the APR is not a tabulated value, it is the root of an equation. Capital, nominal rate, term, fees and insurance premium are your own entries, copied from the loan offer. Hence the absence of a tax year on this page.
• The French consumer code lists five categories of charges that belong in the APR; this calculator takes three: arrangement fees, guarantee fees and insurance. Broker fees, account-opening and account-keeping charges and the cost of valuing the property are not entered. The APR shown is therefore a floor: the actual APR of the offer is equal to or higher.
• The calculation assumes a fixed-rate loan, drawn down in one go and repaid in equal monthly instalments in arrears. Staged drawdowns, deferred amortisation, stepped loans and variable rates are not modelled.
• Insurance is entered as an amount in euros per month, assumed constant over the whole term — which corresponds to cover based on the initial capital. Insurance based on the outstanding balance gives decreasing premiums and a lower insurance APR.
• The statutory usury ceiling is not built into this calculator: it is published quarterly by loan category and enters none of the amounts computed here. Comparing your APR with the ceiling in force for your loan category is left to you.
• The instalment is rounded once to the cent, and it is that actual payment which feeds the APR equation. The APR and the insurance APR are shown to two decimal places of a percentage point, the regulation requiring at least one.