Calculating APRs with Intro XL:



APRs do not make a lot of sense in the payday industry, but it's the federal law, so we all have to follow it. Get compliant before the CFPB knocks on your door.

We offer our APR calculation as a web service. You send us specific loan information like: Amount Financed, Loan Date, Payment Dates and Payment Frequency; and we send you back an answer in the form of an APR. Our service is designed for payday lenders doing installment loans. We will work with your in-house IT team or software vendor to implement this APR solution.

Why is a correct APR important?
  1. Inaccurate APRs make you an easy target for the CFPB.
  2. Avoid fines.
  3. Avoid cost administrative costs associated with refunds.
  4. Avoid class action lawsuits.
  5. Avoid an interruption in your business.
  6. Sleep better at night.
What makes calculating an APR so difficult?
  • Multiple payments
  • Odd days - short or long first periods
  • Date roll - skipping dates that fall on bank holidays or weekends
  • Figuring out the correct unit period

How can I test my APRs?

You can use an download from the US governments, OCC (Office of the Comptroller of the Currency) website called APRWIN.

What is APRWIN?

At the banking industry's request, the OCC (Office of the Controller of Currency) released APRWIN for general use. APRWIN was created so bank examiners can test APRs without understanding Appendix J. Appendix J is where all the mathematical equations and calendar procedures for closed-end credit APR calculations are found.

APRWIN is not a solution for calculating APRs. It's a method for testing them. Our APR tool will calculate an APR securely through a simple API call that matches APRWIN's calculation.

My programmer should be able to figure this out, right? This is just a calculation?

Here is a sample of what you need to work through to calculate an APR:

If the unit-period is a month, the number of full unit-periods between 2 dates shall be the number of months measured back from the later date. The remaining fraction of a unit-period shall be the number of days measured forward from the earlier date to the beginning of the first full unit-period, divided by 30.

An APR solution goes beyond just crunching numbers.