Ensure Compliance with the Military Lending Act (36% Cap)
Calculated MAPR:
0%
Understanding MAPR for Service Members
The Military Annual Percentage Rate (MAPR) is a specialized credit calculation required by the Military Lending Act (MLA). Unlike the standard APR found on Truth in Lending Act (TILA) disclosures, the MAPR includes additional costs such as credit insurance premiums, ancillary products, and debt cancellation fees.
Key Differences: APR vs. MAPR
APR: Focuses primarily on interest and certain prepaid finance charges.
MAPR: Aggregates interest, credit insurance, application fees, and fees for credit-related products sold in connection with the loan.
The 36% Cap: Federal law prohibits lenders from charging covered borrowers an MAPR higher than 36%.
Example Calculation
If you take a $1,000 loan for 12 months with a 15% interest rate ($83.10 total interest) and pay $75 in various MLA-eligible fees, your total finance charge for MAPR purposes is $158.10. While your stated APR might be 15%, your MAPR would be approximately 28.4%.
function calculateMAPR() {
var principal = parseFloat(document.getElementById('loanAmount').value);
var months = parseFloat(document.getElementById('loanTerm').value);
var rate = parseFloat(document.getElementById('statedRate').value);
var insurance = parseFloat(document.getElementById('insuranceFees').value) || 0;
var debt = parseFloat(document.getElementById('debtFees').value) || 0;
var ancillary = parseFloat(document.getElementById('ancillaryFees').value) || 0;
if (isNaN(principal) || isNaN(months) || isNaN(rate) || principal <= 0 || months <= 0) {
alert("Please enter valid positive numbers for principal, term, and rate.");
return;
}
// Calculate standard interest over the life of the loan (Simplified for calculation)
// Using monthly compounding for an installment-style loan estimate
var monthlyRate = (rate / 100) / 12;
var monthlyPayment = principal * monthlyRate / (1 – Math.pow(1 + monthlyRate, -months));
var totalInterest = (monthlyPayment * months) – principal;
// Sum of all fees included in MAPR
var totalMlaFees = insurance + debt + ancillary;
// Total MAPR Finance Charge
var totalMlaCharges = totalInterest + totalMlaFees;
// Calculate MAPR
// MAPR is calculated as the periodic rate (total charges / principal / duration) annualized
// This is a common simplified approach for closed-end credit compliance estimation
var periodicRate = (totalMlaCharges / principal) / months;
var mapr = periodicRate * 12 * 100;
// Display Results
var resultArea = document.getElementById('resultArea');
var maprValue = document.getElementById('maprValue');
var complianceStatus = document.getElementById('complianceStatus');
resultArea.style.display = 'block';
maprValue.innerText = mapr.toFixed(2) + "%";
if (mapr <= 36) {
resultArea.style.backgroundColor = "#f0fff4";
maprValue.style.color = "#2f855a";
complianceStatus.innerText = "✓ COMPLIANT: This loan is within the 36% MAPR limit.";
complianceStatus.style.color = "#2f855a";
complianceStatus.style.border = "1px solid #c6f6d5";
} else {
resultArea.style.backgroundColor = "#fff5f5";
maprValue.style.color = "#c53030";
complianceStatus.innerText = "⚠ NON-COMPLIANT: This exceeds the 36% Military Lending Act cap.";
complianceStatus.style.color = "#c53030";
complianceStatus.style.border = "1px solid #fed7d7";
}
}
Who is a "Covered Borrower"?
The Military Lending Act protections apply to "Covered Borrowers," which include:
Active-duty members of the Army, Navy, Marine Corps, Air Force, or Space Force.
Active-duty members of the National Guard or Reserve units on federal active duty.
Dependents of the above (spouses, children under 21, or full-time students under 23).
Disclaimer: This calculator is for educational purposes only. MAPR calculations for complex credit products should be verified with a compliance professional or legal counsel.