# Calculating APR ? Any suggestions?

#### zacemmel

##### Well-known Member
I am trying to calculate the APR on a loan based on the fact that there are certain costs. I don't fully understand APR and I was wondering if there are any built-in functions to calculate the "costs" that are to be included with the LOAN?

Any financial wizards in the house?

IE, I have a loan of \$100,000 and I have costs of \$4,200 -

Any help would be greatly appreciated.

Thanks.

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One more thing, the interest rate would be 6% and the payments would be monthly. Term would be 30 years.

That depends on when and how are the costs included in there.

If costs are deducted at the beginning,
calculate the payments on the gross amount.

Then use the function RATE considering the calculated payment, net proceeds, and other factors.

See Help on Rate

I hate financial functions ;<

A B C
1 Loan % Rate 6.00%
2 Loan Amount \$100,000.00
3 Cost \$4,200.00
4 Total Loan \$104,200.00 =SUM(B2:B3)
5 Periods 360
6 Mo Payment (\$624.73) =PMT(B1/12,B5,B4,0)
7 APR 6.39% =RATE(B5,B6,B2)*12

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