Free Tool
Loan Cost & APR Calculator
Find out the real annual cost of any Nigerian loan app, bank loan, or credit facility — and see exactly how much you are truly paying.
Most Nigerian loan apps show you a small daily or weekly rate that looks manageable. This calculator converts that rate into the true Annual Percentage Rate (APR) and shows you the real total cost of your loan — so you can borrow with your eyes fully open.
Enter Your Loan Details
Loan Cost Calculator
Fill in the details below — use the actual numbers from your loan app or lender
My interest rate is charged:
Please fill in all fields correctly before calculating.
How much you are borrowing
Enter your daily interest rate
Enter number of days
Select your repayment period unit
Any upfront fee charged before disbursement
Insurance, admin, or any other charges
Your Results
Where Your Money Goes
Breakdown of your total repayment
Principal (what you borrowed)
Interest charges
Fees
Full Cost Breakdown
Every naira you will pay for this loan
| Item | Amount | % of Total | Status |
|---|
How This Compares to Other Loan Types
See where your loan falls on the Nigerian lending spectrum
| Loan Type | Typical APR Range | Your Loan | Verdict |
|---|
What This Loan Really Costs You
Putting the numbers in everyday Nigerian perspective
Frequently Asked Questions
Questions About APR and Loan Costs
What is APR and why does it matter for Nigerian loan apps?
APR stands for Annual Percentage Rate. It is the true cost of borrowing money expressed as a yearly figure. Nigerian loan apps almost always show you a small daily or weekly rate because it looks less alarming — but when that same rate is converted to an annual figure, it often exceeds 300% to 800%. APR lets you compare any loan fairly, regardless of how short or long the repayment period is.
How do I find the interest rate my loan app is charging me?
Open the loan app and look at the loan details screen before accepting. It is usually shown as a percentage per day, per week, or per month. If you have already taken the loan, check your repayment amount and subtract the principal you borrowed — the difference is the interest charged. Divide that by the principal and multiply by 100 to get the rate for that period.
Why is the APR of my loan app so much higher than the rate they showed me?
Because loan apps show you a short-term rate — usually for 7 to 30 days — which sounds small. When that same rate is applied repeatedly across a full year, the true annual cost becomes enormous. A 15% weekly rate, for example, becomes approximately 780% annually. This is not a mistake — it is a deliberate presentation choice that makes the loan look more affordable than it actually is.
What is considered a high APR in Nigeria?
Licensed Nigerian banks typically charge between 20% and 30% APR annually. Microfinance institutions range from 30% to 60%. Most Nigerian loan apps charge between 100% and 800%+ APR when rates are properly annualised. The FCCPC has specifically flagged rates at the extreme end as exploitative and predatory.
Should I include the processing fee in my APR calculation?
Yes, absolutely. Processing fees, insurance charges, and any mandatory upfront deductions are all part of your true borrowing cost. A loan advertised at 10% monthly with a 5% processing fee is actually more expensive than it appears. This calculator includes all fees in its total cost calculation to give you the most accurate picture possible.
Can I use this calculator to compare two different loan offers?
Yes. Calculate each loan offer separately and compare the APR figures shown in your results. The loan with the lower APR is always the cheaper option regardless of how the rates are presented by each lender. This is exactly why APR exists as a standard — it creates a level playing field for comparison.
What should I do if my loan app APR is extremely high?
First, explore alternatives — cooperative societies, salary advances, or licensed microfinance banks typically offer far lower rates. If you have already taken the loan and cannot repay, read our guide on How to Write a Debt Settlement Letter in Nigeria. If the loan app is harassing you, visit our article on What Are Your Rights Against Loan Apps in Nigeria.
Is this calculator accurate for all Nigerian loan types?
This calculator uses standard compound interest and flat rate calculations suitable for most Nigerian loan products. It does not account for variable rates, rollover penalties, or compounding within very short periods (such as daily compounding within a 7-day loan). For the most accurate result for your specific situation, always check the exact repayment amount shown in your loan agreement.
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