APR Calculator

Calculate the true Annual Percentage Rate of your loan, including all fees and costs.

Your Details

$

Loan Fees

$

1 point = 1% of loan amount

$

Application, appraisal, etc.

Enter your loan amount, stated rate, term, and fees to see the true APR and cost breakdown.

Complete User Guide

What is APR?

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees (origination, discount points, and other closing costs), giving you the true yearly cost of the loan. APR is always equal to or higher than the stated rate. Lenders are required to disclose APR so you can compare offers.

APR reflects: (Interest + Fees) over the life of the loan, expressed as an annual rate

Net loan = Loan amount − Total fees. Payment is based on loan amount; APR is solved so that payments match the net proceeds.

Key Concepts

Stated rate vs APR

The stated (nominal) rate is the interest rate on the loan. APR includes that rate plus upfront fees, so it represents the true cost of borrowing.

Origination and fees

Origination fee is a one-time charge (often a percentage of the loan). Discount points (1 point = 1% of loan) buy a lower rate. Other fees can include processing or closing costs.

Why compare APR?

A loan with a lower interest rate but high fees can have a higher APR. Always compare APR when shopping; consider total cost and how long you will keep the loan.

How to Use This Calculator

  1. Enter the loan amount, stated annual interest rate, and term in years.
  2. Add origination fee (e.g. 1% of loan), discount points (1 point = 1% of loan), and any other fees.
  3. Click Calculate APR to see the true APR, monthly payment, total interest, total fees, and fee breakdown.
  4. Review the cost breakdown chart and net loan amount.
  5. Use this to compare multiple loan offers before deciding.

Understanding Your Results

APR (hero)

The true annual cost of the loan including fees. This is the number to use when comparing offers from different lenders.

Monthly payment and total interest

Based on the full loan amount and stated rate. Total interest is what you pay in interest over the life of the loan.

Fee breakdown and net loan

Shows origination, points, and other fees. Net loan is the amount you actually receive (loan amount minus total fees).

Understanding the Charts

Cost breakdown chart

A doughnut or pie chart showing how much of the total cost is principal (loan amount), interest, and fees. This helps you see the impact of fees at a glance.

Important Notes

  • This calculator is for estimation. Actual APR may vary by lender and product.
  • Discount points are optional upfront fees that typically reduce your interest rate; negotiate fees when possible.
  • If you plan to refinance or move soon, paying points for a lower rate may not be worth the upfront cost.

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