APR vs IRR
While the Internal Rate of Return (IRR) can be used to get an approximation of the Annual Percentage Rate (APR), it is based on the nominal anual rate that would be required to obtain a zero end balance.
The APR of a loan is determined by calculating the rate at which the net present value of the complete cash flow (including costs) is zero.
Depending on where you live, legislators have defined the APR in different ways. In the EU the APR represents an effective annual rate, while in the US is is a nominal annual rate.
The EU and US definitions each have their own methods to determine the time between the start date and each individual data item, based on the dominant time interval.
These methods also use a type of day count convention that is specific for use in APR calculations.
APR Calculator
APR Calculator is a free macOS application that we developed to let you calculate the annual percentage rate of charge for credit transactions using the methods used in the European Union and the United States.
To download APR Calculator, please visit the ParanzaSoft home page and click the download link.
Getting InterestThing data into APR Calculator
InterestThing can export the appropriate APR data as an APR Calculator document.
Only data items representing amounts will be exported. Unknowns will be converted to inflows or outflows, depending on the current x Value.
Data items representing other data (e.g. balance dates or rate changes) will be omitted.
In APR Calculator you can add extra costs (single or periodic) that need to be taken into account to calculate the annual percentage rate. Do not add them in InterestThing, as this will influence calculations.
To export data as an APR Calculator document, select Export from the File menu and choose APR. You can select the appropriate method now, or change it in APR Calculator.
Back to Examples