APR Calculator (VND)
If you borrow in Vietnam — a personal loan, a consumer-finance instalment plan, or a vehicle loan — the number a lender advertises is the quoted (nominal) interest rate. It is almost never what the loan actually costs you. The reason is upfront fees: origination charges, loan insurance, processing and disbursement fees. These are deducted the moment the loan is disbursed, so you sign for 300.000.000 but receive less in your account, while interest and principal are still charged on the full face amount. The true cost is therefore higher than the headline rate.
APR (Annual Percentage Rate) rolls everything into one comparable figure. Formally, it is the interest rate at which the cash you actually receive equals the present value of every repayment you make. Because fees shrink what you receive while leaving the repayments unchanged, APR is always greater than or equal to the quoted rate. In this page's illustrative example — borrow 300.000.000, quoted at 12%/year, over 36 months, with 9.000.000 of upfront fees (an assumed 3% of the loan) — the true APR works out to 15.08%/year, fully 3.08 percentage points above the quoted rate.
APR is the only fair way to line up offers against each other. Two loans with the same quoted rate but different fee structures cost different amounts; a "lower rate, higher fee" offer can easily be more expensive than a "higher rate, no fee" one. The calculator above takes the loan amount, the quoted annual rate, the term in months, and total upfront fees, then returns the monthly payment, the true APR, and the total cost of credit. Note that all rates and fee amounts in the examples are illustrative assumptions — enter the figures from your own loan agreement.
How APR is calculated
The idea: equate net cash to the repayment stream
APR is the monthly rate i (then annualised) that solves: cash received = present value of all repayments, discounted at that same i.
| Term | Meaning |
|---|---|
| Face amount | The amount on the contract (interest accrues on this) |
| Upfront fees | Total charges deducted at disbursement |
| Net proceeds | Face amount − upfront fees |
| Monthly payment | Amortising payment on the face amount at the quoted rate |
| APR | The rate that makes PV(payments) = net proceeds |
The steps
- Monthly payment via the standard annuity formula on the full face amount at the quoted rate: PMT = P·r / (1 − (1+r)⁻ⁿ), where r = quoted rate / 12 and n = months. Fees do not reduce the payment — that is the crux.
- Net proceeds = face amount − upfront fees.
- Solve for APR: find the monthly rate i such that PMT·(1 − (1+i)⁻ⁿ)/i = net proceeds. The tool uses 60 rounds of bisection on the interval [0, 1].
- Annualise: APR = (1 + i)¹² − 1.
Why APR exceeds the quoted rate
You pay interest and principal on the full face amount but pocket only the smaller net proceeds. With zero fees, APR is simply the effective-annual version of the quoted rate: at a nominal 12%/year compounded monthly, APR ≈ 12.68% — already slightly above 12% because of monthly compounding. Every dong of fees pushes it higher.
What the model leaves out
It assumes a fixed rate for the whole term, level monthly payments, and that all fees are paid once at disbursement. Real-world loans may carry recurring fees, floating rates, or early-repayment penalties that a simple APR does not capture. Treat the result as a relative comparison tool between loans, not an official regulatory figure.
Worked example: borrow 300.000.000 at 12%/year over 36 months, 9.000.000 in fees
Illustrative assumptions: a fixed quoted rate of 12%/year, a 36-month term, total upfront fees of 9.000.000 (an assumed 3% of the loan), level monthly repayments.
| Metric | Value |
|---|---|
| Face amount | 300.000.000 |
| Upfront fees | 9.000.000 |
| Net proceeds | 291.000.000 |
| Monthly payment (on 300.000.000) | 9.964.293 |
| Total paid over 36 months | 358.714.546 |
| Interest only (excl. fees) | 58.714.546 |
| Total cost of credit (interest + fees) | 67.714.546 |
| Quoted rate | 12%/year |
| True APR | 15.08%/year |
You sign for 300.000.000 but only receive 291.000.000, while still paying 9.964.293/month for 36 months — a payment sized to the full 300 million. Measured against the cash you can actually use, the rate is far higher: an APR of 15.08%/year, exactly 3.08 points above the quoted 12%.
Same quoted feel, different APR — why fees decide
Compare two loans of 200.000.000 over 24 months. Loan A is quoted higher but charges no fee; Loan B is quoted lower but bundles 8.000.000 of fees:
| Loan A | Loan B | |
|---|---|---|
| Quoted rate | 11%/year | 10%/year |
| Upfront fees | 0 | 8.000.000 |
| Monthly payment | 9.321.568 | 9.228.985 |
| True APR | 11.57% | 15.07% |
Judged by the quoted rate, Loan B (10%) looks cheaper than Loan A (11%). Judged by APR — 11.57% vs 15.07% — the fee on Loan B flips the ranking. This is exactly the trap APR is designed to expose. Pair this with FiMo's loan comparison tool to put two full offers side by side.
Frequently asked questions
What is APR and how does it differ from the quoted rate?
APR (Annual Percentage Rate) bundles interest and upfront fees into a single comparable rate — it is the rate at which the cash you actually receive equals the present value of all your repayments. The quoted rate is the nominal interest only, before fees. Because fees cut your net proceeds while repayments stay sized to the full loan, APR is always at least the quoted rate. Illustrative example: borrow 300.000.000 at 12% with 9.000.000 of fees → APR 15.08%, which is 3.08 points higher.
Why is the APR higher than the rate on my contract?
Because you pay interest and principal on the full face amount, but upfront fees are deducted at disbursement so you only receive the smaller net proceeds. In the example you sign for 300.000.000 but receive 291.000.000 after 9.000.000 in fees, while still paying 9.964.293/month on the full 300 million. Measured against the cash you can actually use, the effective rate is higher — an APR of 15.08% instead of 12%.
What is the formula for APR?
APR is the monthly rate i solving PMT × (1 − (1+i)⁻ⁿ)/i = net proceeds, then annualised as (1+i)¹² − 1. PMT is the level monthly payment from the annuity formula P·r/(1 − (1+r)⁻ⁿ) on the full loan (r = quoted rate/12, n = months), and net proceeds = loan − fees. The equation has no closed-form solution, so the tool finds i by 60 rounds of bisection.
If a loan has no fees, what is the APR?
With zero fees, APR is just the effective annual version of the quoted rate. At a nominal 12%/year compounded monthly, APR ≈ 12.68% — slightly above 12% because interest is charged and added each month (the compounding effect). So even a genuinely fee-free loan has a true rate a touch higher than the headline number.
Can a lower-rate loan with high fees cost more?
Yes. Compare two 200.000.000 loans over 24 months: Loan A at 11% with no fee has an APR of 11.57%; Loan B at 10% but with 8.000.000 of fees has an APR of 15.07%. By quoted rate, B (10%) looks cheaper than A (11%); by APR the order reverses. This is precisely the trap APR is built to reveal.
How does total cost of credit differ from APR?
Total cost of credit is an absolute amount: the sum of all repayments minus the cash you received — 67.714.546 in the example (interest plus fees). APR is a percentage-per-year figure used to compare loans of different sizes and terms. The absolute cost tells you how much money you lose; the APR tells you how expensive it is relative to other offers. Look at both before deciding.
Which fees should I include when computing APR?
Rule of thumb: include every mandatory upfront fee that reduces your net proceeds — appraisal/underwriting fees, compulsory loan insurance, disbursement and arrangement charges. Exclude voluntary add-ons or third-party costs paid outside the loan. Remember that all rates and fee amounts shown here are illustrative assumptions — take the real numbers from your fee schedule and loan agreement, and enter those into the calculator.