APR Calculator

Convert a quoted interest rate plus fees into the true annual percentage rate (APR), so you can compare loan offers on an equal footing.

Effective APR

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Monthly payment-
Cash you receive-
Total interest-
Total cost (interest + fees)-

Show the math

APR is the rate that equates your payments to the cash you actually get:

net = Σ M / (1 + apr/12)k

Your payment is set by the note rate on the full loan, but fees mean you receive loan − fees. Solving for the rate that makes the present value of all payments equal that net amount gives the true APR. With no fees, the APR equals the note rate.

What this does

An APR calculator converts a quoted interest rate plus fees into the true annual percentage rate, so you can compare loan offers on an equal footing. The APR reflects the real yearly cost of borrowing, not just the headline rate.

How to use it

  1. Enter the loan amount and quoted interest rate.
  2. Add any upfront fees.
  3. Choose the loan term.
  4. Read the APR alongside the note rate.

How it works

The monthly payment is set by the note rate on the full loan, but fees reduce the cash you actually receive. The APR is the rate that equates those payments to the net amount you get; with no fees, it equals the note rate.

Understanding your result

Use APR to compare offers with different rates and fees. The larger the fees relative to the loan, the bigger the gap between the rate and the APR.

Example

A $200,000 loan at 6% over 30 years with $4,000 in fees has a payment set by 6%, but because you net $196,000 the APR is about 6.18%.

Sources & methodology

Last updated .

Frequently asked questions

What is APR?

APR (annual percentage rate) expresses the total yearly cost of a loan (interest plus fees) as a single percentage. It lets you compare offers that have different rates and fees.

How is APR calculated here?

The monthly payment is set by the note rate on the full loan, but fees reduce the cash you actually receive. The APR is the rate that equates those payments to the net amount you get; with no fees it equals the note rate.

Why is the APR higher than the interest rate?

Because fees mean you receive less money than you repay against. The bigger the fees relative to the loan, the larger the gap between the rate and the APR.

Do you keep my inputs?

No, the calculation is done entirely in your browser.