APR Calculator
Calculate the Annual Percentage Rate (APR) of a loan — the true cost including fees, not just the stated interest rate. Useful for comparing offers.
Inputs
Origination, points, application fees rolled into the cost.
Effective APR
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Monthly payment
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Total paid
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Total interest + fees
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About APR Calculator
Why APR matters
A loan with a "lower" nominal rate but high fees can have a higher true cost (APR) than a "higher" rate with no fees. Federal law (TILA) requires lenders to disclose APR for comparison.
How it’s calculated
Find the interest rate that would produce the same monthly payment on a loan equal to (principal − fees). Since you’re only "getting" the principal minus fees but paying based on the full principal, the implied rate is higher.
Things APR doesn’t include
Mortgage APR usually excludes home insurance, property tax, and prepayment penalties. Always read the disclosure to see what’s rolled in.