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APR (RRSO) calculator — compare loan costTable of contents
APR (RRSO) is a yearly indicator that summarises the total cost of a loan. It helps compare offers that have different nominal rates, commissions or fees. It is not a magic number, but it is very useful when you compare offers on the same parameters.
APR usually covers:
That is why two loans with the same nominal rate can have very different APR.
Nominal interest shows the cost of interest only. APR is broader because it includes mandatory costs. This explains why a low nominal rate does not always mean a cheap loan.
APR is meaningful only when the comparison is like‑for‑like:
Use the APR calculator for a quick comparison, then verify the schedule in the loan calculator.
APR is a great shortcut, but it does not replace total repayment. Two offers with similar APR can differ in one‑off fees or instalment structure. In practice compare:
APR depends on the repayment schedule, commissions, fees and when costs are paid. If a commission is financed in the loan and insurance is paid upfront, APR usually increases. This is why the same nominal rate does not guarantee the same total cost.
Assume 50,000 PLN over 60 months.
Even with a similar instalment, offer A is usually cheaper in total cost.
Extending the term reduces the instalment but usually increases total cost. APR may end up higher despite a “cheaper” monthly payment.
Zero APR does not necessarily mean zero fees. Always check the total amount to repay.
In short‑term loans (e.g. 30–60 days) APR can look very high because it is annualised. This does not automatically mean the offer is illegal — but it does mean you should compare the real cost in currency.
APR is not a legal cap. For consumer loans there are statutory limits on non‑interest costs that apply independently of APR. A high APR does not automatically mean the caps are exceeded, but it does mean you should verify total cost and contract conditions.
When comparing offers, also check:
To compare properly, collect:
Without these documents, APR comparisons can be misleading.
For cash loans APR is a quick filter. For mortgages it is crucial, because long terms magnify total cost. In practice, compare APR together with instalment and total repayment.
APR is the simplest way to compare loan offers on a fair basis. It does not replace the contract analysis, but it greatly reduces the risk of a “cheap‑looking” offer.
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