Reverse APR calculator
Turn their payment back into a rate.
Enter the quote exactly as it was given to you. This works out the implied annual rate, the payment factor, and what the equipment costs you over the full term. Nothing leaves your browser.
What it really is
- Amount financed
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- Total of payments
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- Total cash out (incl. down & buyout)
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- Cost of the finance
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- Implied payment factor
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- Implied annual rate
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How to use this
Run every quote through it before you compare them. Two offers with an identical monthly payment routinely carry very different rates, because the term, the fees financed and the end-of-term buyout all differ. The implied annual rate is the honest comparison point.
A few notes on reading the output:
- The implied rate is nominal annual, calculated from the monthly periodic rate the payment stream implies. It is the right figure for comparing offers against each other and against a bank quote.
- Financed fees inflate it. If you can pay doc and filing fees up front instead of rolling them in, do — set fees to zero here and watch the rate drop.
- A $1 buyout is a purchase. Enter 1. A fair market value lease is different: enter a realistic estimate of what the buyout will actually be, because that is real money you will spend or forgo.
- Longer is not cheaper. Stretching the term lowers the payment and raises total cost. Check the term against how long the machine actually earns.
Next: lease versus loan, and what each one does to ownership, tax and your balance sheet.
Bring us the quote before you sign it.
Send the numbers and we will tell you whether it is competitive for your credit profile and your equipment.