What is the APR of a loan and how is it calculated

The Annual Percentage Rate or APR is the interest charged for borrowing that represents the actual and effective cost of the loan expressed as a percentage, since all the costs associated with taking out the loan are considered. We explain how it is calculated.

If you want to compare mortgages or any type of loan, it is essential to know what the Annual Percentage Rate or APR is. In Spain, this indicator must appear in the advertising and documentation of financial products that refer to a loan. This will help you compare the real cost of two or more loans over a specific term.

The several lending options that you can find on the financial products market have two interest rates associated with them, the NIR and the APR, both of which financial institutions are legally obliged to inform customers about before they give out a loan. Although they are closely related, there are important differences that must be known to know the effective cost of a loan.

Differences between the NIR and the APR

The NIR or Nominal Interest Rate is a fixed percentage that the bank establishes for the provision of money and which represents the sum of the Euribor plus the differential applied. In other words, it is the amount to be paid to the financial institution in exchange for the capital loaned. This cost can vary depending on the amount of the loan, the repayment period and our economic profile. However, the NIR does not include the costs associated with the mortgage and, unlike the APR, it does not have to be calculated annually.

The APR takes into account all the costs associated with taking out the loan, so it includes the NIR and any fees related to the loan, such as the arrangement fee, the transaction costs borne by the consumer and the frequency of payments. However, we should keep in mind that the APR does not include the cost of some concepts, such as notary fees or insurance premiums and other products linked to the transaction.

It is also important to remember that in the case of variable interest rate loans, it is not possible to determine their future evolution, so the calculation of the APR is just indicative. In any case, it is the most reliable indicator when it comes to determining the real cost of a loan, beyond the commercial technique behind the APR announced in the headlines of the offers and promotions presented by financial institutions.

How to calculate the APR

The APR interest rate is calculated using a mathematical formula (APR = (1 + NIR/f)f – 1) that takes into account four factors: the amount of the loan; the NIR; the repayment terms; and all the costs related to the loan. You can use one of the APR calculators on the Internet, such as this one from the OCU, or enter the data in the mortgage or personal loan simulator offered on the Bank of Spain’s website.

Remember that before carrying out any simulation, it is necessary to have these data to obtain the most realistic percentage possible: initial capital, NIR, constitution and periodic mortgage costs, notary, agency and land registry fees. The periodicity of the repayment, i.e., if you are going to pay monthly, quarterly, etc. As well as the repayment period of the mortgage.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze or have a look at the products that 11Onze recommends in our Marketplace.

It is estimated that each household spends on average more than 700 euros a year on heating. However, with the war in Ukraine, the price of energy has skyrocketed. So, this year, homes with accumulators and electric radiators could pay twice as much as last year. From 11Onze, we offer you 11 tips to save on heating.

With the current price fluctuations, the first basic measure to save money when you switch on your heating is to check whether your utility company is offering you the best price. But, even if the price is tight, our goal should be to optimise energy consumption to minimise both the amount of the bill and our carbon footprint. To this end, we offer you some practical tips that will enable you to reduce the amount of energy needed to heat your home. 

Check your windows and doors

Window and door frames are essential for keeping your home warm. Any gap can create an unwanted draught. If your window and door frames are old and the windows do not close tightly, you can improve the insulation by fitting foam weather stripping or even some insulating tape. And, if you have a fireplace, don’t forget to close it when not in use.

Make the most of sunlight

The sun is our great natural ally against the cold. That’s why it’s best to keep the blinds up and the curtains drawn during the day. In this way, the sun’s rays will enter your home and help to raise the temperature. The orientation of the different rooms in your home will determine the hours when the sun’s rays enter directly through each window. 

Protect yourself from the cold darkness

When the sun goes down, the outside temperature drops, so we should insulate ourselves as much as possible so that heat is not transferred from the inside of the house to the outside. To do this, we should do the opposite of what we do during daylight hours: lower blinds and draw curtains so that the heat that has built up during the day does not escape when it gets dark. Thick, opaque curtains, better if they are made of thermal fabric, will help you to keep the heat in, as they will help to insulate the window areas better.

Do not ventilate more than necessary

Ventilating the house every day is an essential health and hygiene measure that allows you to renew the air and oxygenate the rooms. However, when the cold weather arrives, it is advisable to do so for 10 or 15 minutes, no more. And preferably in the morning or in the middle of the day, when the outside temperature is higher, so that heat loss is minimal.

Put the heating where you need it

Keeping unused areas of your home warm is a waste of energy. That is why it is a good idea to leave all the rooms that you are not going to use closed and to turn off the heat sources you have in them. If, for example, you are going to spend the morning between the living room and the kitchen, why keep the rest of the rooms warm? Close the doors and turn off the radiators in the rooms. If the surface area to be heated is smaller, energy consumption will also be lower.

Wrap up warm

It makes no sense to go around the house wearing a t-shirt when the cold weather arrives. It is a waste of heating. All the warmth you gain through clothing will translate into heating savings. You don’t need to wear gloves, but thick socks, fuzzy slippers, a light fleece or a dressing gown will allow you to lower the thermostat a little and reduce your energy bill. And don’t forget a blanket on the sofa is very nice.

Turn off the heating at night

A good way to save on heating is to turn it off at night, as in most cases blankets and duvets provide enough warmth. Materials such as wool or flannel are very good choices for bedding. And keep in mind that the traditional hot water bags still work.

Use rugs

Carpets help to insulate the home better and keep our feet warm. They also provide a feeling of warmth and comfort when you walk on them. 

Do not use radiators as a dryer

The function of radiators is to provide heat, not to dry clothes. Therefore, avoid using them as a dryer when it is not raining and you can hang clothes outside. We must ensure that the heat sources are left free to make the most of the heat they give off. 

Keep the heating system in good condition

It is estimated that 60 % of gas boilers in the European Union are inefficient, requiring excess energy to heat homes. Properly regulating pressure, purging radiators, cleaning burners and checking filters for replacement can help to optimise system performance and achieve more heat with less energy.

It should not be forgotten that the energy crisis caused by the war in Ukraine made many countries to switch back to or increase the share of highly polluting energy sources. Unfortunately, the issue of climate change has been put on the back burner despite the urgent need for action in this decade to prevent global warming from reaching levels that would have irreversible effects.

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One of the founding objectives of 11Onze is to offer tools so that our community can reduce costs by managing their money more effectively. Some might think that this is just a marketing slogan, a nice phrase that sounds good and that’s it. Therefore, we have contacted some of our 11Onze Segurs customers to let their testimonials speak for themselves.

Offering a good product at a reasonable price is not an easy job. At 11Onze Segurs we analysed the different options provided by the home insurance market for months, as well as carrying out studies of insurance costs through surveys of members of our community who are homeowners.

The objective was clear: to be able to offer our clients the best home insurance, comparing coverage from various providers to find the best option that adapted to the particular circumstances of each one, and at a more than competitive price, from €5 per month.

But the price is not everything. From the outset, it was clear to us that we had to reduce the amount of paperwork and small print that accompanies any insurance policy. Simplicity and transparency in the scope of the cover we are taking out give us more peace of mind and avoid last-minute surprises.

The result of a job well done

The effort has been worth it, and we believe we have succeeded. At 11Onze Segurs you can take out and manage your home insurance from your mobile phone, streamlining procedures, paying a monthly or annual fee, with no permanence, between 15% and 20% cheaper than with traditional insurance companies, and without forgetting our commitment to society as a certified B Corp company.

But it is not just us telling you, Vincenç Aguilà, from Sabadell, explains that he was clearly overpaying for his home insurance. By switching to 11Onze Segurs he saves €350 a year. And when we asked him what he intended to do with the money he saved: “Reinvest it in 11Onze!

From Roquetes, Gemma Monllau explains that she is “delighted with the decision to change insurance”, she has saved €55 in the policy fee, which will help her to cover “other expenses, as everything is getting more expensive!“. Xavier Tornos, from Terrassa, had no doubts, with the €100 he has saved by switching to 11Onze Segurs, he has bought “a new Bluetooth speaker!

If you want to discover fair insurance for your home and for society, check 11Onze Segurs.

After hitting a new all-time high on the eve of the US presidential election, gold prices plummet to a three-week low in the face of Donald Trump’s decisive victory thanks to strong Treasury yields and a stronger dollar.

In a context of intense political polarisation, uncertainty over the US presidential election and geopolitical tensions in the Middle East pushed the gold price above 2,594 euros per ounce, setting a new all-time high just days before the US elections and reversing its proclivity to underperform its long-term average price in the run-up to the presidential election.

This upward trend was already spurred by continued central bank purchases of gold and strong Asian demand for the precious metal. Even so, far from fulfilling the predictions of a close electoral contest predicted by the polls published by the mainstream media, Donald Trump’s landslide victory, winning a majority in the Senate, controlling the House of Representatives and getting the popular vote, has far surpassed the results of 2016 and evaporated investor uncertainty.

Gold falls as the dollar strengthens

As the election results sent the dollar to a four-month high and strengthened real yields on US Treasuries to levels not seen since July 2024, gold prices plunged 3 per cent to €2,456 per ounce, a three-week low and on track for their biggest daily loss in five months.

Improved expectations for economic growth and tax cuts along with concerns that tariffs, a higher fiscal deficit and Trump’s proposed immigration policies could revive inflation, explain the rise in the value of the dollar and government bond yields, making gold, which offers no yield, less attractive to investors.

Analysts point out that this may also result in the Federal Reserve not cutting interest rates as much or as quickly as expected. The yield on 10-year US Treasuries rose 17 basis points to a four-month high of 4.46%, pending the Fed’s announcement later today.

Is this a good time to buy gold?

Unsurprisingly, this combination of political and economic events has caused a shift in market sentiment, affecting the attractiveness of gold, which is inversely proportional to the value of the dollar.

Still, now might be a good time to add gold to your investment portfolio. Some analysts believe that demand will continue to push prices higher, and expect it to reach $3,000 per ounce in the coming months. This makes it an attractive buying opportunity at current prices for those looking to expand their gold holdings.

Moreover, at a time when central banks continue to increase their gold reserves and the armed conflict between Israel and Iran continues to escalate, there is a risk that a new energy crisis could erupt, which would boost demand for gold as a safe-haven asset for investors and savers alike.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

Amb l’actual inflació, els diners al banc no fan més que perdre valor dia rere dia. Però sempre és necessari mantenir una mica de liquiditat per si sorgeix algun imprevist. Per això els experts recomanen tenir un “matalàs” d’efectiu en els teus comptes d’estalvi que cobreixi com a mínim tres mesos de despeses.

La vida està plagada d’imprevistos. També en el pla econòmic. A vegades són positius, com un augment de sou, però a vegades hem d’afrontar sorpreses desagradables que fan mossa en la nostra butxaca. Pot ser des d’una despesa puntual extraordinària, com quan hem de reposar un electrodomèstic vell de casa, fins una cosa més seriosa, com patir una malaltia incapacitant o quedar-nos sense treball.

Per fer front a aquestes eventualitats, és necessari disposar d’un fons d’emergència. L’antic costum de guardar els diners en el matalàs o en qualsevol altre amagatall de la casa et permet disposar d’ells de manera immediata, però és poc recomanable pel risc de robatori i la nul·la rendibilitat.

És preferible recórrer a les entitats bancàries, tot i que has de tenir en compte el límit del Fons de Garantia de Dipòsits d’Entitats de Crèdit per a que els teus diners sempre estiguin protegits.

Assegura els teus estalvis

Com detalla el seu web, aquest organisme “té per objecte garantir els dipòsits en diners i en valors o altres instruments financers constituïts en les entitats de crèdit, amb el límit de 100.000 euros per als dipòsits en diners”.

Això desaconsella tenir més de 100.000 euros en comptes i dipòsits a termini d’una mateixa entitat, ja que el fons només cobrirà fins a 100.000 euros per titular en cas que el teu banc faci fallida.

Si, per exemple, tinguessis 120.000 euros en una entitat que ha fet fallida, encara que fora en diversos comptes o dipòsits, aquest organisme només et retornaria 100.000 i perdries els altres 20.000. D’aquí la conveniència de repartir els diners entre diverses entitats per a que els comptes i dipòsits no superin el límit garantit en cap d’elles.

De quant parlem?

Només en casos molt excepcionals el nostre fons d’emergència hauria d’assolir aquests 100.000 euros, especialment en un moment com aquest, en el qual l’elevada inflació fa que els diners dipositats al banc perdin valor mes rere mes. De totes maneres, l’import òptim dependrà en última instància de les nostres circumstàncies personals: bàsicament, quines són les nostres despeses previstes i amb quins ingressos podríem comptar en cas d’un esdeveniment negatiu.

Els experts solen recomanar que el coixí financer cobreixi com a mínim tres mesos de despeses. Cal tenir en compte que mantenir un saldo massa baix en el nostre compte ens pot fer entrar en números vermells amb facilitat, la qual cosa generaria despeses financeres pel descobert.

L’OCU, per exemple, indica que una quantitat prudent en els comptes corrents “pot ser l’equivalent a tres mesos del teu salari”. No recomana més perquè aquests comptes “no són el millor lloc per a mantenir els nostres estalvis, ja que pràcticament cap entitat les premia amb interessos”.

Quant al màxim, no sol recomanar-se més del necessari per a cobrir sis mesos de despeses. De fet, el portal ‘Finances per a tots’, una iniciativa del Banc d’Espanya, la Comissió Nacional del Mercat de Valors i el Ministeri d’Assumptes Econòmics i Transformació Digital, aconsella “acumular un fons equivalent a entre tres i sis mesos de despeses”. A partir d’aquí es tracta de buscar inversions que garanteixin una bona rendibilitat.

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Podem canviar el món? Quina és la nostra capacitat real d’impacte sobre l’entorn que ens envolta? Lara de Castro, HR Business Partner d’11Onze, explica què és el consum conscient i com podem contribuir a la sostenibilitat del planeta amb les nostres decisions de compra quotidianes.

Sovint subestimem l’impacte que els nostres actes individuals tenen sobre l’entorn que ens envolta. Però totes les accions, per petites que siguin, contribueixen a modelar el món. Lara de Castro ho deixa clar al següent vídeo amb un exemple molt evident.

Com ella mateixa adverteix, hi ha moltes persones que pensen que un acte individual sovint “és massa feble” per a tenir un impacte significatiu en l’entorn, “però no és així”. Cada acció compta i té conseqüències que es poden acumular a les de la resta de la comunitat. La realitat és que “les nostres decisions més quotidianes són rellevants, per petites que siguin”. En aquest sentit, és molt evident el paper que juguen totes les decisions de compra si som consumidors conscients.

Què és el consum conscient?

Els consumidors conscients són persones que escullen els productes i els serveis amb criteris que van “més enllà de la relació qualitat-preu”, ja que inclouen l’impacte ambiental i social com un element decisori en els seus hàbits de compra. Una conseqüència és l’aposta pel comerç de proximitat, que “és una manera de donar suport als productors locals i evitar l’impacte econòmic i ambiental del transport”, com explica Lara de Castro.

Un altre exemple de consum conscient el trobem en l’aigua. Si volem reduir la contaminació al planeta, podem substituir el consum d’aigua embotellada, “amb totes les conseqüències que sabem que té el plàstic”, per aigua de l’aixeta tractada amb filtres sostenibles.

Com indica Lara de Castro al final del vídeo, si tots som més conscients “en els petits detalls de la vida quotidiana” la realitat és que “sí que podem canviar el món”. La decisió és nostra.

Si vols descobrir com beure la millor aigua, estalviar diners i ajudar al planeta, entra a Imprescindibles 11Onze.

Do we really know how we spend our money? And, are we aware of what is important and what is not? Càrol Rafales, senior sales specialist at 11Onze, explains what the Kakebo budgeting system consists of and how we can adapt it to our personal situation.

The Kakebo budgeting system, which translates as “household ledger“, was devised in 1904 by Japanese journalist Motoko Hani. At a time when women depended on the money given to them by their husbands, Motoko wanted to provide Japanese women “with a tool that would allow them to manage their household finances efficiently”, says Càrol Rafales.

What do we need to put this budgeting system into practice? Very little, because it is designed to be very simple. As Rafales explains, “a blank notebook, a pencil, and a lot of perseverance“. Even so, we can buy a Kakebo book, specifically designed as a diary where we can keep track of our income and expenses.

Conscious consumption

In addition to managing our money, the Kakebo system helps us to avoid unnecessary purchases that we sometimes make irrationally. Only by focusing on analysing how money disappears from our account, will we become truly aware of our consumption habits. The graphs and tools found in the book will help us make decisions before making purchases and control recurring expenses.

Kakebo divides monthly expenses into four categories: survival, leisure, culture, and other (non-anticipated). Based on these blocks, Rafales points out the basic premise of the method, “we write down the expected income for the month, subtract fixed expenses, and from the remaining amount we take out the savings target we have. What is left over is the budget for variable expenses. For a more detailed explanation of how Kakebo works, take a look at the video above.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

The limitation of the price of gas has lowered the price of electricity and gas compared to 2022. However, energy consumption is one of the most expensive fixed costs for Catalan households, so we propose ideas to reduce consumption.

We leave behind the holidays and winter begins to peek timidly to the head. This combination forces us to consider how to save on heating, because the pockets are shorter than ever at the beginning of the year. For this reason, from 11Onze the head of agents Mireia Cano raises 5 tricks to heat the house saving to the maximum.

1. Avoid sudden changes. When heating the house or a room, either with a stove or heating, do it gradually. Set a low temperature and raise it as the room warms up. If you set the temperature too high all of a sudden, the energy demand will be much higher.
2. Take advantage of the hours of sunshine. We do it little in winter, but it is important. During the hours of sunshine, remove the curtains. If it is not cold at midday, take the opportunity to open the windows. The sun’s rays will warm the floor and the interior walls of the house. It’s not much, but every little helps!
3. Insulate well. It is necessary to have good insulation, if not you can lose 30% of the heat of the house. Windows and doors are key. In the video, Mireia Cano suggests some homemade ideas that can help you. Something very simple and important is to lower the blinds every night so that the coldness does not radiate through the windows.
4. Heat efficiently. It is not necessary to heat the whole house if you do not use all the rooms. Do you need the dining room? The bedroom? The bathroom? Then heat these spaces. It is obvious that air circulation will tend to balance the temperature, so what you should do is close the doors of the rooms you do not need.
5. Invest in fabrics. If you don’t want it to get cold, keep the house warm. What does this mean? That the fabrics retain heat very well, therefore, carpets and curtains will help us to have a warmer home.

And finally, Mireia Cano adds an extra tip: heat the bed the way our grandparents did, with hot water bottles. Or, if you want, with bags of seeds that are heated in the microwave. Saving is key, for the pocket and for the planet. Applying these tricks won’t make you rich, but it sure will save a little. And as the saying goes, every stone makes a wall.

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According to the World Gold Council (WGC), gold has broken 8 price records in September. In its latest report, it points to continuous increases derived from the geopolitical situation and, above all, from the movements of central banks.

It seemed that gold had risen abruptly in August due to the sudden fall of the stock markets. And, if anyone expected strong corrections in the price of physical gold, everything indicates that they will have to wait a long time. Gold continues to position itself as the safe haven par excellence in an environment of instability that continues and that has no prospects of changing in the short term.

All this has caused gold to close the month of September with a rise of 4.6%, reaching $2,630 per ounce. Gold has currently undergone a correction that has brought it to around 77 euros per gram, which in any case means an appreciation of more than 35% in one year. Some analysts attribute this slight correction to doubts about the Chinese economy and disappointment over the meager fiscal stimulus policy announced by its government.

The reason for the rise

In its latest report, the World Gold Council points to geopolitical tensions in the Middle East and the aggressive rate cuts by the Federal Reserve as the main reasons for the unstoppable rise in gold. It also points to a scenario of instability for stocks and bonds, which would attract investors to gold, knowing that it is an asset that appreciates in these situations.

The question, therefore, poses a moral dilemma: would a possible resolution of the current armed conflicts cause the fall of gold? Well, according to economist Gustavo Martínez, the answer is clear: no. Gold would continue to be at high prices due to the need of central banks to protect themselves against economic uncertainties due to the volume of debt. There is also another issue that is pushing gold, the fact that ETFs based on physical gold have become popular. The ease and speed of buying and selling ETFs facilitates and multiplies operations, but requires the accumulation of physical gold so as not to become a bubble without support.

Preciosos 11Onze

11Onze has been offering physical gold to its community since February 2022. From the beginning, it was pointed out that an environment of inflation, debt crisis and geopolitical risk would make gold a safe haven. We said then that it was necessary to protect savings, as central banks would do, by buying physical gold. Since then, gold has appreciated by more than 50%.

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

The price of gold continues the upward trend seen since the end of 2023 and continues to set record highs. In this context of high prices, is it still advisable to buy gold to protect our savings or to diversify our investments?

The price of old has gone up by 23% since the beginning of 2024 and its price remains at an all-time high of around 2,290 euros per ounce. While it is true that the reasons that make this precious metal the safe-haven asset of choice for investors are repeated over time, this current upward trend exceeds past performances.

After the strong monthly rise in July, gold rose sharply again in August and stood at 2,280 euros per ounce, up 3.6%. It also reached a new all-time high on 20 August, before declining only marginally at the end of the month.

Going into September, the gold price has lost some of its gains, but still remained comfortably above the psychological mark of $2,500 (€2,267) during Thursday’s European session.

Continued central bank demand for gold, a weaker dollar and global geopolitical tensions, as well as optimism that the Federal Reserve will cut interest rates this month, explain the recent price rallies.

On the other hand, the expected US Consumer Price Index (CPI) report released yesterday (Wednesday) shows that inflation continues to moderate, dropping four tenths during August to 2.5% y-o-y, while core inflation remains at 3.2% y-o-y, as expected. This dampens expectations of a large rate cut by the Fed, which both boosts the value of the dollar and may moderate demand for gold.

Will gold prices continue to rise?

Although the latest report published by the World Gold Council (WGC) acknowledges that the current macroeconomic environment is difficult to interpret due to a plethora of conflicting economic data, this macroeconomic uncertainty is reflecting positively on the gold market.

In this regard, it reports that activity in Options spreading positions (OSP) has been steadily increasing, approaching levels not seen since 2020 or during 2011 and 2013. This reflects investors’ willingness to hedge against changes in interest rates and the outcome of the upcoming US election.

‘Looking back over these periods, it seems that the triggers for an increase in OSP activity were related to one of two scenarios: a change in interest rate policy or risk events in the market. Today we face both,’ notes the WGC.

Analysts at ING Research, on the other hand, believe the expected Fed rate cut will push gold to new all-time highs, while the US presidential election in November will also continue to contribute to the gold metal’s upward momentum until the end of the year.

In conclusion, despite the price rise, gold’s ability to act as a hedge against economic volatility, its stability in the face of inflationary pressures and the increase in global demand are key factors that continue to reinforce its attractiveness as an investment and as a safe-haven asset. That said, its price can be volatile sometimes, so it is crucial to assess the risk we are willing to take and clearly define our investment objectives before making a decision.

Preciosos 11Onze makes it easy to buy gold, at the best price and with total security. Give us a call and speak to one of our agents without any obligation to clarify any doubts you may have and protect yourself from economic crises with the ultimate safe-haven asset: gold. If you want your savings to keep or increase their value, Gold Patrimony.