Some loans are quoted at an incredibly low flat interest rate. This app helps you estimate the actual cost of loans by comparing flat interest rates to their equivalent Annual Percentage Rates (APR) and vice versa. The period of monthly payments and sales fees (or commissions) are factored into the APR computations.
The Effective APR (EAR) which takes into account the compound interest rate calculated across a year is also calculated. EAR can be used to compare the annual interest between loans with different compound terms (e.g. daily, monthly, annually).