APRC (RPSN)
RPSNAPRC (annual percentage rate of charge, RPSN in Czech) is the total yearly cost of a loan as one percentage. The bank must state it in the offer and in the agreement (Act No. 257/2016 Coll.). It covers interest plus the costs the bank makes a condition of the loan, such as fees or compulsory insurance, so it is always higher than the nominal rate. How to use it: APRC vs interest rate.
Example
Offer A: 5.00 % with no fees; on CZK 4,000,000 over 25 years the payment is CZK 23,384 and the APRC 5.12 %. Offer B: 4.80 %, a CZK 10,000 fee and compulsory insurance at CZK 600 a month, with a payment of CZK 22,920 plus the premium. Its APRC comes out at 5.20 %. The offer with the lower rate is therefore actually dearer, assuming the terms stay the same throughout.
In practice
The APRC is calculated as if the rate applied for the whole term, even when the fixation lasts only 3 or 5 years. Treat it as a yardstick for comparison, not an exact price. Compare offers with the same loan amount, term and fixation. One offer may include the premium while the other leaves it out because insurance is not a condition there; miss that and the comparison is meaningless.
How it differs
The interest rate sets only the interest, and the payment is calculated from it. On top of that, the APRC adds compulsory costs and converts everything into an annual effective rate. The interest margin is the part of the rate the bank takes above its cost of funds, and it does not show up separately in the APRC.
Frequently asked questions
What is APRC on a mortgage?
The annual percentage rate of charge (RPSN): interest plus compulsory fees and insurance, expressed as one yearly percentage. Czech lenders must state it in the offer and in the agreement, so loans can be compared on the same basis.
Which matters more, APRC or the interest rate?
For comparing offers, the APRC: in our example a 4.80 % rate with a fee and compulsory insurance has an APRC of 5.20 %, more than a fee-free 5.00 % offer at 5.12 %. The rate alone decides your monthly payment.
What is a good APRC for a Czech mortgage?
One close to the rate itself, which means few compulsory extras. New mortgages averaged 5.00 % in August 2026 (ČBA), and a fee-free 5.00 % loan of CZK 4,000,000 over 25 years has an APRC of about 5.12 %.
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