Read the result correctly
Without fees and insurance, the estimated nominal rate does not show the full cost of borrowing.
How is the rate solved?
The tool iteratively finds the rate that produces the entered annuity payment.
Why can the result differ?
Payment dates, fees, insurance and schedule method can change the result.
Frequently asked questions
Can a rate be found from a payment?
Yes, when the principal and term are also known.
Is this APR?
No, it is an estimated nominal rate.
What does a zero result mean?
Total payments equal principal. If payments are below principal, the cash flows are invalid for this model and an error is shown.
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Read the calculation methodology and finance guide for formulas and assumptions. Calculation methodology · Finance guide