What is Add-On Interest?

Add-On Interest is a very simplified method of calculating the total Finance Charges for a loan. The Rate is simply multiplied by the Principal, and that result multiplied by the number of years in the loan. Example: $10,000 Principal 15% Add-On Rate 48 Months (4 Years) (Or use Number of Pmts / 12 to arrive… Continue reading What is Add-On Interest?