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?

Answer
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.
Lauren Smith
Answered on Nov 18, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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