Tae — Calculador

The standard formula used by a TAE Calculator is derived from the EU Directive 2008/48/EC:

But in reality, banks calculate TAE by solving for the rate that makes the present value of all cash flows (including fees) equal zero. calculador tae

| Loan | Amount | Nominal Rate | Fees | TAE | |------|--------|--------------|------|-----| | | €5,000 | 6% | €0 | 6.00% | | Bank B | €5,000 | 5.5% | €150 | 6.78% | The standard formula used by a TAE Calculator

Note: Advanced TAE calculators also incorporate a variable for "fees" ($C$) and "term" ($n$) to calculate the Internal Rate of Return (IRR), but the formula above is used for simplified conversion. calculador tae