How do I compute APR on my car loan?
I'm trying to figure out how much APR I'm paying on my car loan. How do I calculate this number?
Calculating your APR can help you better understand your finances and is always a good idea.
To compute the APR on a car loan, you will use the:
- Interest rate
- Loan amount
- Term length (how long your loan is)
- Additional fees
First up, you’re going to do some addition. Add all your fees and interest for the term length.
Next, divide the sum by your total loan amount.
After that, you’ll divide by the length of your car loan in days.
Then, you will multiply that answer by 365.
Lastly, you will multiply by 100 to arrive at your APR.
If you are unhappy with your APR, note that you may be able to refinance into a loan with a better rate. You can refinance quickly by downloading the Jerry app. On average, car owners pay $85 less every month by refinancing.
MORE: How to refinance a car
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How do you clean mold off vinyl car seats?
My grandmother has reached the age where she no longer feels comfortable driving and decided to give me her car for my 21st birthday. The car runs great and has been sitting in her garage, almost untouched, for the last year or two. While driving it home, I noticed the smell of mildew and found some mold growing on the seats. How can I clean the mold off the vinyl seats?
Nov 18, 2021
How do you clean a car’s AC condenser?
My car’s air conditioning hasn’t been working as effectively recently. I asked my mechanic friend to take a look, and he said it looked and sounded fine but that the condenser could use a cleaning. He briefly explained how to clean the condenser, but honestly was a bit over my head. What’s the best way to clean a car’s AC condenser?
Nov 18, 2021
How can you open a Honda CR-V tailgate from the inside?
The back of my car is a little banged up right now and it's made it really hard to open from the outside. Can you open the trunk of a Honda CR-V from the inside?
Oct 28, 2021