Selection of APR Calculator from the Tools Menu Bar option presents an APR Calculator form which enables input of the constituent elements of a Personal Contract Purchase quotation in order to establish the expected annual percentage rate (APR).
In addition to displaying the form name the Title Bar provides a number of useful buttons.
In order to calculate the APR it is necessary to populate the following fields:
Allows the input of the required contract term, in months, for the quotation.
This field determines the frequency of invoiced regular payments to be made within the quoted contract. The down-arrow button accesses a drop-down list displaying the following currently available selections:
- M Monthly
- 2 Bi-Monthly
- Q Quarterly
- B Bi-Annually
- A Annually
The number of regular periodic rentals quoted for the proposed contract.
The month within the quoted contract term in which payments are due to commence.
The total funded capital for the contract
The "Balloon" may be defined as the residual value of final purchase repayment for the vehicle.
The initial rental value that is displayed here is the period rental value multiplied by the number of initial rental months. This may also include a Handling Charge or Credit Checking Fee if this has been selected for the PCP Product within Product Management /Product Details.
The rental value for the selected frequency e.g. monthly, annually, etc.
A checkbox which, if ticked (selected with the mouse), denotes that in a three year contract, for example, the Balloon is taken at the end of month thirty-six and not the beginning of month thirty-seven. The difference in timing creates a subtle difference in the calculation of the APR figure.
The APR field to the right of the form displays the calculated Annual Percentage Rate following the population of all the required data input forms above.
The Command Buttons in the APR Calculator form function as follows:
Following completion of the above fields this button is used to calculate the exact Annual Percentage Rate (APR).
Returns to the primary Quotations form.
Displays four sample APR calculations showing the required data in the above fields and the calculated APR value.