How to use the APR Calculator tool
3 simple steps · under a minute
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Enter the loan
Type the loan amount, interest rate and term in months.
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Add the fees
Enter origination, closing and other upfront fees charged by the lender.
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Read the APR
See the real annual percentage rate and the total cost of borrowing.
About APR calculator
The interest rate on a loan is not the whole story. Lenders often charge origination fees, closing costs or other upfront charges. The annual percentage rate (APR) combines the interest rate and these fees into one yearly figure, so you can compare loans fairly.
This APR calculator finds the rate at which your monthly payments would repay only the money you actually receive after fees. Use it to compare personal loans, auto loans and mortgages — the offer with the lowest APR is usually the cheapest overall.
True cost of borrowing
Spreads upfront fees over the loan to show the real yearly rate.
Compare offers fairly
A lower interest rate with high fees can have a higher APR than another offer.
Full breakdown
Monthly payment, total interest, fees and total cost in one place.
Frequently asked questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR adds lender fees and expresses the total as a yearly rate, so it is usually higher.
Why is APR important?
It lets you compare loans with different fees on equal terms. US lenders must disclose the APR under the Truth in Lending Act.
Which fees are included in APR?
Usually origination fees, discount points and some closing costs. Third-party costs such as appraisals may not be.
Is a lower APR always better?
For the same term, generally yes. Also compare the monthly payment and total cost.
Is this financial advice?
No. The lender’s official disclosure is the final figure.