Nav created a series of APR calculators to communicate and compare the costs across different financing products. Each financing product is unique, and the interest rate for one product might be vastly different from another, but with a similar APR. If you are considering a couple different financing options, it’s best to plug the terms into nav’s APR calculator for the associated product to understand the true cost to fund.
Annual Percentage Rate (APR) is the actual cost of a loan to a borrower. The APR of a loan can vary significantly from the interest rate because of various fees associated with the loan, including origination fees and administration fees. That’s why it’s extremely important to calculate your APR from interest rate and other fees to determine the total cost of the offered capital.
It’s striking how much the APR can change from the initial interest rate with certain financing products! Don’t be fooled — calculate your APR before choosing a product.
This article was originally written on October 13, 2015 and updated on February 13, 2023.
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