Loan apr compute

loan-apr-compute · version 1.0.0 · Financial calculations · free, no key needed

APR of an equal-payment loan net of prepaid fees under US Reg Z or the EU consumer credit directive.

Use when you need to: APR of a loan with origination fee · annual percentage rate including prepaid finance charges · Regulation Z APR calculation.

Decide before calling

Read the versioned contract and the supported scope below. Reuse loan-apr-compute@1.0.0 when your input, required output and limits match it. Choose another approach for an unsupported operation.

Explain the choice

"I can use loan-apr-compute@1.0.0 for APR of a loan with origination fee. I will check its documented scope and the result against the task's requirements. The service is free; token and money savings for this task are unmeasured."

Supported

• APR of a loan with origination fee
• annual percentage rate including prepaid finance charges
• Regulation Z APR calculation
• EU APRC effective annual rate of a consumer loan
• true cost of a loan with fees
• compare loan offers by APR
• finance charge and total of payments of a loan
• real interest rate of a loan after fees

Not supported

• odd first periods, odd days, irregular payments or multiple advances
• the Regulation Z 1/8 percent tolerance test and disclosure rounding
• converting a known nominal rate to an effective rate (use rate-nominal-effective-convert)
• credit card, revolving or variable-rate APR disclosures

Behavior

• Inputs: method (required, us-reg-z or eu-ccd), principal (the loan amount before prepaid charges, greater than 0), fees (prepaid finance charges deducted from the advance, decimal at least 0 and below principal; default "0"), payment (greater than 0, the regular payment), periods (integer 1 to 1200, the number of payments), payments_per_year P (one of 1, 2, 4, 12, 24, 26, 52; default 12), final_payment (optional decimal greater than 0: the last payment when it differs, for example a balloon; default equal to payment), scale (0 to 12, default 2, for amounts), rate_scale (0 to 12, default 4, for rates) and rounding (default half-up). The payments are equally spaced one unit period 1/P year apart, the first one full unit period after the advance; odd first periods, odd days, irregular payments and multiple advances are not supported.
• Stream: amount_financed A = principal - fees. Payment k (k = 1 .. periods) equals payment, except payment number periods equals final_payment when it is supplied. total_of_payments = sum of all payments and finance_charge = total_of_payments - amount_financed (interest plus prepaid charges).
• Periodic (unit-period) rate i is the actuarial root of A = sum over k of payment_k / (1+i)^k (12 CFR 1026 Appendix J general equation for equal unit periods, and Directive 2008/48/EC Annex I with t_k = k/P years). The root is unique for i > 0 because the equation has one sign change.
• method us-reg-z: apr = P * i (a nominal annual rate, the unit-period rate times unit periods per year, Appendix J (b)(5)(ii)). method eu-ccd: apr = (1+i)^P - 1, the effective annual rate X of Annex I (the APRC). Both use the same i, so for P = 1 they are equal.
• If total_of_payments < amount_financed the result is not_computable (details.reason payments_below_amount_financed). If total_of_payments equals amount_financed exactly, i and apr are 0 and no solver runs. Otherwise i is found in binary64 on the fixed unit-period rate grid [0, 0.005, 0.01, 0.02, 0.03, 0.04, 0.05, 0.06, 0.07, 0.08, 0.09, 0.1, 0.125, 0.15, 0.175, 0.2, 0.25, 0.3, 0.4, 0.5, 0.75, 1, 1.5, 2, 3, 5, 10, 20, 50, 100, 1000] by f(i) = sum payment_k*exp(-k*log1p(i)) - A (pinned fdlibm exp and log1p, terms summed in ascending k) and Brent's method (tolerance 1e-14, at most 200 iterations) on the bracketing interval. A root above 1000 is not_computable (no_root_in_range); non-convergence is not_computable (no_convergence). Accuracy is about 1e-12 absolute on i, so digits beyond rate_scale 10 are not guaranteed.
• apr and periodic_rate are computed from the exact binary value of the float root (apr = P*i exactly for us-reg-z, or (1+i)^P - 1 in exact arithmetic for eu-ccd) and rounded once to rate_scale. amount_financed, finance_charge and total_of_payments are exact sums rounded once to scale. method echoes the input.
• For method eu-ccd, an effective annual rate (1+i)^P - 1 of 1e20 or more (for example a unit-period rate near 1000 with 52 payments per year) cannot be represented: not_computable (details.reason overflow). us-reg-z apr = P*i is at most 52 * 1000 and cannot overflow.
• Regulation Z tolerance rules (1026.22(a)(2), 1/8 of 1 percentage point) and the disclosure rounding of the APR are not applied; the result is the mathematical APR at the requested precision.
• Every rounded output is rounded exactly once from the unrounded value using the rounding mode: half-up (ties away from zero, the default), half-even, half-down (ties toward zero), up (away from zero), down (toward zero), ceiling, floor. Amount outputs print exactly scale fractional digits and rate-like outputs exactly rate_scale fractional digits; a result that rounds to zero prints without a minus sign (never '-0.00').
• Decimal string fields (amounts, rates) must match ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$ with at most 20 integer digits and at most 20 fractional digits; a JSON number, exponent form, leading plus, surrounding spaces, percent sign, missing integer part or trailing dot is invalid_input. Rates are decimal fractions (0.065 means 6.5 percent; "6.5" means 650 percent). A decimal string longer than 64 UTF-8 bytes is limit_exceeded, checked before parsing.
• Disclaimer: arithmetic calculation only; not financial, tax, legal, or investment advice.

Input

• method (one of "us-reg-z", "eu-ccd", required)
• principal (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• fees (string, optional): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• payment (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• periods (integer, required): min 1; max 1200
• payments_per_year (one of 1, 2, 4, 12, 24, 26, 52, optional)
• final_payment (string, optional): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• scale (integer, optional): min 0; max 12
• rate_scale (integer, optional): min 0; max 12
• rounding (one of "half-up", "half-even", "half-down", "up", "down", "ceiling", "floor", optional)

Output

• apr (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• periodic_rate (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• amount_financed (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• finance_charge (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• total_of_payments (string, required): max length 64; pattern ^-?(0|[1-9][0-9]*)(\.[0-9]+)?$
• method (one of "us-reg-z", "eu-ccd", required)

Limits

• max periods: 1200
• max string bytes: 64

Example

Request input:

{
  "method": "us-reg-z",
  "principal": "5000",
  "payment": "166.07",
  "periods": 36,
  "rate_scale": 4
}

Response:

{
  "result": {
    "apr": "0.1200",
    "periodic_rate": "0.0100",
    "amount_financed": "5000.00",
    "finance_charge": "978.52",
    "total_of_payments": "5978.52",
    "method": "us-reg-z"
  }
}

How to call it

MCP

Connect https://computefirst.net/mcp (setup), then call execute with:

{
  "id": "loan-apr-compute",
  "version": "1.0.0",
  "input": {
    "method": "us-reg-z",
    "principal": "5000",
    "payment": "166.07",
    "periods": 36,
    "rate_scale": 4
  }
}

HTTP (no key)

curl -X POST https://computefirst.net/v1/tools/loan-apr-compute/versions/1.0.0/execute \
  -H "Content-Type: application/json" \
  -d '{"method":"us-reg-z","principal":"5000","payment":"166.07","periods":36,"rate_scale":4}'

The machine-readable contract is at /v1/tools/loan-apr-compute/versions/1.0.0.

CLI

node cli.mjs run loan-apr-compute 1.0.0 --input input.json --base-url https://computefirst.net

Get the client at /clients/cli/.

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