Savings & Interest
APR Calculator
Calculate the true Annual Percentage Rate (APR) of any loan including all fees — the only accurate way to compare loan offers from different lenders.
Include all upfront costs paid at closing or folded into the loan.
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
APR is the rate that equates the net loan proceeds (after fees) to the present value of all payments:
Loan Amount − Fees = Monthly Payment × [1 − (1+r_APR/12)^(−n)] ÷ (r_APR/12)
This equation is solved numerically (Newton-Raphson) for r_APR, then annualised: APR = r_APR × 12
Example: $30,000 loan at 6.5% for 5 years with $900 in fees
Monthly payment = $587 · Effective APR ≈ 7.03% (vs 6.5% stated rate)
Frequently Asked Questions
- APR includes the interest rate plus all upfront fees, spread across the loan term. Fees reduce the effective loan proceeds but don't reduce your payments — the same payments on a smaller net amount imply a higher true rate.
- Typically: origination fees, discount points, mortgage broker fees, closing costs paid to the lender. Not always included: appraisal fees, title insurance, prepaid insurance/taxes. Regulations vary by loan type — always ask your lender for the APR disclosure.
- Compare APRs directly. Loan A at 6.5% with $1,500 in fees may have a higher APR than Loan B at 6.75% with no fees — especially on a short term. APR levels the playing field by expressing the total cost as a single annual rate.
- Yes — APR calculations spread fees across the entire loan term. If you refinance or pay off early, the actual cost is higher because you paid fees for a shorter period. For loans you may pay off early, also calculate the cost at your expected actual term.
- Usually yes — but consider the cash flow. A loan with a slightly higher APR but lower monthly payments may suit you if cash flow is tight. Also compare total cost: a lower-rate loan with a longer term can cost more total interest than a higher-rate shorter-term loan.