Provided by Hesapstan, this tool derives a monthly internal rate from cash flows and converts it into a compound annual cost estimate.
Approach
Net loan proceeds are treated as the initial inflow and installments as periodic outflows.
Limits
Not a bank offer
Insurance, commissions, taxes, early closure and bank-specific conditions can change the official cost rate.
Frequently Asked Questions
How is it different from nominal rate?
Annual cost includes fees and compounding as an effective estimate.
How should fees be entered?
Enter total fees deducted or charged to the borrower.
Will it match the bank?
Only if all official cash flows match; the bank offer controls.