Enter the interest rate (%) and the additional fees and charges (%) into the Comparison Rate Calculator. The calculator will evaluate the Comparison Rate.

## Comparison Rate Formula

The following two example problems outline the steps and information needed to calculate the Comparison Rate.

COMR = IR + AF

• Where COMR is the Comparison Rate (%)
• IR is the interest rate (%)
• AF is the additional fees and charges (%)

## How to Calculate Comparison Rate?

The following example problems outline how to calculate Comparison Rate.

Example Problem #1:

1. First, determine the interest rate (%).
• The interest rate (%) is given as: 5.
2. Next, determine the additional fees and charges (%).
• The additional fees and charges (%) is provided as: 2.5.
3. Finally, calculate the Comparison Rate using the equation above:

COMR = IR + AF

The values provided above are inserted into the equation below and computed.

COMR = 5 + 2.5 = 7.5 (%)

Example Problem #2:

For this problem, the variables required are provided below:

interest rate (%) = 6

additional fees and charges (%) = 3