True cost of a microloan

MFO daily rate → annual APR and effective rate

Parameters

Loan amount, ₴

Rate, % per day

Term, days

Issuance fee, ₴

Result

Interest over term3 000,00 ₴

Cost per day100,00 ₴

Nominal annual (APR)365,00%

Effective annual (compounded)3 678,00%

Total to repay13 000,00 ₴

1% per day is 365% nominal APR and ~3,678% effective with compounding. MFOs must state the true annual rate in the contract (art. 18 of the Consumer Lending Act). Maximum debt is capped by law.

The effective rate EIR = (1 + d)^365 − 1 shows the true price of money with daily compounding. For comparison: a bank credit card is ~30–45% APR, a consumer loan 20–35%.

About Real microloan APR

Real microloan APR — what «1% per day» really costs: APR, overpayment, rollovers. Finance: Personal finance management. Use our tools without registration or installing software. All calculations happen in your browser — your data is never sent to a server.