APR Calculator
Calculate the true Annual Percentage Rate (APR) of a loan including fees and compare effective ratesInputs
This is the interest rate advertised by the lender
Include all upfront costs (origination, processing, points)
Most loans compound monthly
Enter values to see results
Join Early, Shape The Future
What is this?
Annual Percentage Rate (APR) is the true cost of borrowing money, expressed as a yearly rate. Unlike the interest rate which only reflects the cost of borrowing the principal, APR includes the interest rate PLUS all fees (origination, points, processing costs), giving you an accurate comparison tool when shopping for loans.How to use
Enter your loan amount, stated interest rate, total fees, loan term, and compounding frequency. The calculator will show your true APR, the difference from the stated rate, effective annual rate accounting for compounding, and total costs over the life of the loan.Tips
- Always compare APR between lenders, not just interest rates - it reveals the true cost
- A big gap between interest rate and APR means high fees (origination, points, etc.)
- For mortgages: 1 point = 1% of loan amount, typically lowers rate by 0.25%
- APR is most useful for comparing similar loan terms (same duration)
- Shorter loans make fees less impactful on APR vs longer loans
- Excellent credit (750+): 6-10% APR, Good (700-749): 10-18%, Fair (650-699): 18-25%
- Calculate breakeven on points: upfront cost ÷ monthly savings = months to break even
- Effective Annual Rate (EAR) is even more accurate as it accounts for compounding
- Federal law requires lenders to disclose APR (Truth in Lending Act)
Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual results may vary based on lender terms, market conditions, and individual circumstances. Consult a qualified financial advisor before making financial decisions. See our full disclaimer for details.