APR Calculator
Turn a loan's interest rate plus upfront fees into its true annual percentage rate (APR).
About the APR Calculator
Enter the loan amount, the interest rate, the term and any upfront fees. The calculator finds the APR, the yearly rate that makes the monthly payments repay only the cash you actually receive, and shows the payment and total cost.
APR spreads the loan's fees over its term, so you can compare offers fairly: a lower rate with high fees can cost more than a higher rate with none. US lenders must disclose APR under the Truth in Lending Act.
The formula
Find APR such that the payments repay (loan − fees)
Worked example
20,000 at 7% over 5 years with a 500 fee
- Monthly payment on 20,000: 396.02
- But you receive only 19,500
- The rate that repays 19,500 with those payments: APR 8.068%
Things to keep in mind
- Assumes the loan runs its full term; repaying early raises the effective cost of upfront fees.
Questions people ask
Which fees count in APR?
Usually origination and other finance charges; not every fee (for example some third-party fees on mortgages).
Is APR the same as APY?
No; APR usually ignores compounding within the year.
Why does a shorter loan have a higher APR for the same fee?
The fee is spread over fewer years, so it adds more per year.