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MAPR Calculator for GAP Insurance

Use the calculator to determine the Military Annual Percentage Rate (MAPR) for a loan with GAP insurance and print a Statement of MAPR. MAPR is a standard calculation used by lenders for loans covered by the Department of Defense's Military Lending Act & Regulation Z. It is similar to a standard APR calculation but includes additional fees in the calculation and limits any loan to a MAPR of no more than 36%. MAPR calculations incorporate these fees into a single rate. While MAPR calculations may vary slightly from lender to lender, all lenders must follow the same rules.

MAPR Calculator for GAP Insurance Definitions

Military Annual Percentage Rate (MAPR)
A standard calculation used by lenders for loans covered by the Department of Defense's Military Lending Act & Regulation Z. It is similar to a standard APR calculation but includes additional fees in the calculation and limits any loan to a MAPR of no more than 36%. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. MAPR calculations incorporate these fees into a single rate.
Loan amount
The amount of the loan to the borrower. Prepaid finance charges are assumed to reduce the net amount that is received by the borrower. For example, if the loan amount is $10,500 with $500 in prepaid finance charges, the net amount to the borrower would be $10,000.
Monthly principal and interest payment
The monthly payment principal and interest payment for the amount financed.
Loan term
Number of months for this loan.
Interest rate
The annual interest rate for this loan. This is the stated rate for the loan, not the APR.
Financing start date
This is the first day that interest will begin to be charged on the loan balance. This is also typically the same date that funds are distributed to the borrower.
First payment date
This is the date of the loan's first payment.
Final payment date
This is the date of final payment.
Annual Percentage Rate (APR)
The Annual Percentage Rate (APR) for a loan total cost of borrowing expressed as a percentage. It is a calculation required by the federal Truth In Lending Act (TILA) to report to borrowers to show the total a loan including financing fees. It includes fees specific to the financing of the loan.
APR prepaid finance charges
Fees that should be included in the Annual Percentage Rate (APR) calculation. These fees can vary by lender but typically include pre-paid interest and a loan origination or processing fee. All prepaid finance charges are assumed to reduce the net amount that is received by the borrower. For example, if the loan amount is $10,500 with $500 in APR prepaid finance charges, the net amount to the borrower would be $10,000.
Prepaid interest
Any interest that accrues between the financing start date and one month prior to the first payment date. For example, if your finance start date is 1/15/2018 and your first payment date is 3/1/2018, prepaid interest would be the daily interest from 1/15/2018 to 1/31/2018 (16 days). For calculating APR and MAPR this is considered a finance charge. We calculate this for you automatically.
Fees included in APR
Fees charged for this loan that are included in the APR except pre-paid interest (which is calculated). These should be found on the Truth in Lending statement or other loan document that discloses the loan APR.
GAP insurance premium
GAP insurance premium is a fee charged to cover a 'gap' between an insurance payout and the amount owed on a car in the case of an incident where the vehicle is a total loss.