where
- X is the APR;
- m is the number of the last drawdown;
- k is the number of a drawdown, thus l ≤ k ≤ m;
- Ck is the amount of drawdown k;
- tk is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each subsequent drawdown, thus tl = 0;
- m’ is the number of the last repayment or payment of charges;
- l is the number of a repayment or payment of charges;
- Dl is the amount of a repayment or payment of charges;
- Sl is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each repayment or payment of charges.
APR can be defined as the cost of borrowing, expressed as an annual rate of interest. In order to calculate the annual percentage rate for your mortgage, you need to mention the principal, additional cost (processing fee, appraisal fee etc.), mortgage interest rate as well as loan terms. If you want to calculate apr of your mortgage, you can use the calculators available online.
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