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Work Out APR in Vb.

Posted on 2014-03-07
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Last Modified: 2014-03-09
I need help to work out APR

I can work out monthly repayments based on knowing the interest rate and number of repayments but now I need to work out the APR rate.  



Total repayable: £89,160
Loan : £70,000
Annual rate: 6.75%
Gross loan: £75,495


Can anyone give me some vb code to work out the APR from the information above?

Thanks
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Question by:Ed
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5 Comments
 
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Expert Comment

by:CodeCruiser
ID: 39912807
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LVL 20

Expert Comment

by:ElrondCT
ID: 39913490
Don't need to be that complex for a loan with a single payment level. Use the Rate() method. The VB documentation gives a pretty clear example of how to use it. Note that the money in one direction or the other (payment or initial value) needs to be negative, and that you'll probably want to get a rate per month (assuming payments are made monthly), which then needs to be multiplied by 12.

I can't give you an exact formula, because you haven't provided all the information needed: We need to know the length of time the loan lasts and the payment per month (or other payment period).
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Author Comment

by:Ed
ID: 39913643
Here are the full details. I want to  work out the apr with the below variables on a button click event.  Thanks


Loan Advance:      £70,000.00
Term:      5 years
Monthly Payment:      £1,486.00
Total Repayable:      £89,160.00
Lender Fees:      £500.00
Broker Fee:      £4,995.00
Gross Loan:      £75,495.00
Annual rate: 6.75%
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Accepted Solution

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ElrondCT earned 500 total points
ID: 39913739
Assuming the first payment is due one month after the loan is made:

        Dim APR As Double = Rate(5 * 12, 1486, -70000, 0, DueDate.EndOfPeriod) * 12

gives a result of .0996244, or 9.962%.

If you want to be able to solve for this based just on the loan, fees, and stated interest rate, then you first need to calculate the payment, and feed that into this function:

        Dim LoanPmt As Double = Math.Round(Pmt(0.0675 / 12, 5 * 12, -75495), 2)
        Dim APR As Double = Rate(5 * 12, LoanPmt, -70000) * 12
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Author Closing Comment

by:Ed
ID: 39916028
Perfect, Thankyou
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