APR Calculator
Calculate the Annual Percentage Rate (APR) and true cost of loans. Compare different loan offers, understand total borrowing costs, and make informed financial decisions.
Loan Details
Fees and Charges
Payment Information
APR Calculation Results
Annual Percentage Rate (APR)
Monthly Payment
Total Interest
Total Cost
How the APR Calculator Works
Enter Loan Details
Input your loan amount, interest rate, and loan term to establish the basic loan parameters for APR calculation.
Add All Fees and Charges
Include origination fees, processing fees, closing costs, and any other charges to calculate the true cost of borrowing.
Set Payment Terms
Choose your payment frequency and compounding frequency to match your loan agreement terms.
Review APR and Total Cost
Analyze the calculated APR, monthly payments, total interest, and overall loan cost to make informed borrowing decisions.
Frequently Asked Questions
APR (Annual Percentage Rate) includes the interest rate plus all fees and costs associated with the loan, expressed as a yearly rate. The interest rate is just the cost of borrowing the principal, while APR gives you the true cost of the loan including origination fees, closing costs, and other charges.
APR allows you to compare the true cost of different loans on an equal basis. A loan with a lower interest rate might have higher fees, resulting in a higher APR than a loan with a slightly higher interest rate but lower fees. Always compare APRs when shopping for loans.
APR should include origination fees, processing fees, underwriting fees, closing costs, points, and any other mandatory fees. It typically excludes optional services like credit insurance, late fees, and prepayment penalties unless they're required.
Our calculator uses industry-standard formulas and precise decimal arithmetic to provide accurate APR calculations. However, actual APR may vary slightly based on specific loan terms, timing of fee payments, and lender calculation methods. Always verify with your lender.
Yes, APR is typically higher than the interest rate because it includes additional costs and fees. The difference between APR and interest rate shows you how much the fees add to your borrowing cost. If APR equals the interest rate, there are no additional fees.