Calculating APR for Adjustable Rates

[mark_landi]

Does anyone have a formula to calculate the APR for an adjustable rate
mortgage? I would like to add this field to my spreadsheet so that it
calculates automatically rather than manually typing in the result from
a rate calculator.

 

[Norman Harker]

Hi Mark!

Give an example of how the rate is quoted and the answer you get from
your rate calculator.

If quoted in annual effective terms and you want the APR compounded
monthly:

=((1+Quoted)^(1/12)-1)*12

If you want the monthly effective from annual effective use:

=(1+Quoted)^(1/12)-1

But I suspect that the APR compounded monthly is the rate quoted and
here you just divide by 12 to get the effective rate per month.

But you could be wanting something completely different

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
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