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Finance

APR Calculator

Find the true cost of any loan in seconds

Loan Details

Common: 12 = 1 yr · 60 = 5 yr · 120 = 10 yr · 360 = 30 yr

E.g. appraisal, title, application fees

APR Estimate

APR (Annual Percentage Rate)7.491%+0.991% above stated rate
Monthly Payment$293.4960 payments
Total Interest$2,610over life of loan
Total Cost (incl. fees)$17,960fees: $350.00

Rate Comparison

Nominal Rate
6.50%
APR (true cost)
7.491%

Fees add +0.991% to your effective annual cost.

Loan Amount$15,000.00
Origination + Other Fees$350.00
Amount Received (loan − fees)$14,650.00
Nominal Interest Rate6.50%
Monthly Payment$293.49
Total Interest (60 months)$2,609.53
Total Fees$350.00
Total Cost of Loan$17,959.53
APR (Annual Percentage Rate)7.491%

Amortization Schedule

Full month-by-month breakdown of principal, interest and balance for all 60 payments.

How APR is Calculated

APR (Annual Percentage Rate) is the true annualized cost of borrowing. Unlike the nominal interest rate, APR includes upfront fees — giving you an apples-to-apples comparison between loan offers. It is calculated by finding the interest rate at which the present value of all scheduled payments equals the net amount you actually receive (loan amount minus fees).

  • Higher fees → higher APR vs. stated rate
  • Shorter loan term → fees have bigger impact on APR
  • Compare APRs, not just interest rates, when shopping for loans

Disclaimer: This calculator provides estimates for illustrative purposes only. Results may differ from lender-disclosed APR due to regulatory definitions, compounding conventions, or fee treatments. Consult a qualified financial advisor or review your loan disclosure documents before making borrowing decisions.

About

The APR Calculator helps you find the real annual cost of borrowing by factoring in both the interest rate and upfront fees. While lenders advertise nominal interest rates, APR reveals the true price you pay. Use this free tool to estimate APR from any loan amount, interest rate, origination fee, and term — then compare competing loan offers on equal footing.

FAQ
What is APR and how does it differ from an interest rate?+

APR (Annual Percentage Rate) includes both the interest rate and upfront fees, expressed as a single annualized percentage. The nominal interest rate only reflects the cost of borrowing the principal, while APR reveals the true cost — making it the right metric to compare loan offers from different lenders.

Why does APR matter more on short-term loans?+

Upfront fees are fixed costs spread over the life of the loan. On a short-term loan, those fees are amortized over fewer payments, so they push APR significantly higher than the nominal rate. On a 30-year mortgage, a $3,000 fee barely moves APR; on a 2-year personal loan, the same fee can add several percentage points.

What fees are included in an APR calculation?+

APR typically includes origination fees, underwriting fees, points, and most other mandatory upfront costs. It generally excludes optional charges like prepayment penalties, late fees, and insurance. Check your lender's loan disclosure (APR per Truth in Lending Act) for the exact fee treatment they use.

How accurate is this APR calculator?+

This tool uses the standard present-value method — the same approach required by the US Truth in Lending Act — solved via Newton-Raphson iteration to high precision. Results closely match lender-disclosed APRs, though minor differences can arise from rounding conventions or which fees a specific lender includes.

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