Comparison Rate Calculator

Formula

To calculate the Comparison Rate (\(COMR\)):

\[ COMR = IR + AF \]

Where:

\(COMR\) is the Comparison Rate (%)
\(IR\) is the Interest Rate (%)
\(AF\) is the Additional Fees and Charges (%)

What is Comparison Rate?

The comparison rate is the total cost of a loan, expressed as an annual percentage rate. It includes the interest rate plus any additional fees and charges associated with the loan. This rate helps borrowers understand the true cost of a loan and compare different loan offers more effectively.

Example Calculation 1

Let's assume the following values:

Interest Rate (\(IR\)) = 5%
Additional Fees and Charges (\(AF\)) = 1.5%

Using the formula:

\[ COMR = 5 + 1.5 = 6.5 \% \]

The Comparison Rate is 6.5%.

Example Calculation 2

Let's assume the following values:

Interest Rate (\(IR\)) = 3.75%
Additional Fees and Charges (\(AF\)) = 0.75%

Using the formula:

\[ COMR = 3.75 + 0.75 = 4.5 \% \]

The Comparison Rate is 4.5%.