How to use the APR Calculator
Enter the loan amount, stated interest rate, term and upfront fees and points and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
How it works
APR is the rate that makes the present value of all payments equal the amount received after fees.
Examples
- $20,000 at 6% for 60 months with $600 fees
APR: 7.27% Stated rate: 6.00% Monthly payment: $386.66 Cost of fees expressed as rate: 1.27%
- Same loan with $0 fees
APR: 6.00% Stated rate: 6.00% Monthly payment: $386.66 Cost of fees expressed as rate: 0.00%
- $15,000 at 9% for 36 months with $450 fees
APR: 11.09% Stated rate: 9.00% Monthly payment: $477.00 Cost of fees expressed as rate: 2.09%
Limitations and assumptions
Uses the monthly-rate × 12 convention. Lenders may include other charges in the official APR.
Frequently asked questions
What is the difference between interest rate and APR?
The rate is the cost of borrowing the principal; APR also reflects fees, so it is higher when fees apply.
Why compare APRs?
It puts loans with different fees on the same footing.
Is APR the same as APY?
No. APY includes compounding on savings; see the APY calculator.
Which fees count?
This tool treats the fee as paid upfront out of the loan amount.