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APR Calculator

APR folds a loan’s upfront fees into its interest rate so you can compare offers on equal terms. Enter the loan amount, the interest rate, the term and the fees you pay to get the annual percentage rate, the monthly payment and the total finance charge.

Quick examples
$
%
years
$

Origination fees, discount points and other lender charges.

Your numbers stay in your browser. Nothing is uploaded.
APR6.695%
Monthly payment
$1,264.14
Total finance charge
$259,088.98
Total paid including fees
$459,088.98

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Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.

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    Results you calculate here are kept on this device so you can come back to them.

      Formula

      Payment = amount × r ÷ (1 − (1 + r)^−n), using the stated interest rate
      Net amount received = loan amount − fees
      APR is the rate at which the present value of all payments equals the net amount received; it has no closed formula and is found by trial and error
      Finance charge = total interest + fees

      How to use it

      1. Enter the loan amount and the quoted interest rate.
      2. Enter the term in years.
      3. Add up origination fees, discount points and other lender charges and enter the total.
      4. Compare the APR, not the interest rate, between offers with the same term.

      Worked examples

      A $200,000 30-year mortgage at 6.5% with $4,000 in fees

      APR
      6.695%
      Monthly payment
      $1,264.14
      Total finance charge
      $259,088.98
      Total paid including fees
      $459,088.98

      A $15,000 3-year personal loan at 11% with a $750 origination fee

      APR
      14.584%
      Monthly payment
      $491.08
      Total finance charge
      $3,428.91
      Total paid including fees
      $18,428.91

      A $10,000 5-year loan at 8% with no fees — APR equals the rate

      APR
      8%
      Monthly payment
      $202.76
      Total finance charge
      $2,165.84
      Total paid including fees
      $12,165.84

      Reading APR properly

      US lenders must disclose APR under the Truth in Lending Act. A loan with a lower rate but high fees can have a higher APR than one with a higher rate and no fees. Fees weigh more on short loans: a 5% origination fee lifts an 11% three-year loan to a 14.58% APR.

      APR assumes you keep the loan for its full term. If you sell or refinance after a few years, upfront fees are spread over less time and the true cost is higher than the APR suggests. Which fees must be included differs by loan type, so a lender’s disclosed APR may differ slightly from this estimate.

      Questions people ask

      What is the APR on a $200,000 mortgage with $4,000 in fees?

      At a 6.5% rate over 30 years the payment is $1,264.14 and the APR is 6.695%.

      What is the difference between interest rate and APR?

      The interest rate sets your payment; the APR also counts fees. With no fees the two are equal — a $10,000 five-year loan at 8% with no fees has an 8% APR.

      Is a lower APR always better?

      For loans of the same type and term kept to the end, yes. If you expect to pay it off early, favor the offer with lower upfront fees even if its APR is a little higher.

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