APR Calculator

Find the true cost of a loan. Enter the loan amount, interest rate, term and upfront fees to calculate the APR and see how much the fees really add.

Origination fees, points and other finance charges.
APR
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Monthly payment–
Amount you receive–
Total interest–
Total cost (interest + fees)–

How APR is calculated

First the monthly payment is found from the full loan amount and the stated rate. Then the calculator finds the interest rate that would produce that same payment on the amount you actually receive (the loan minus fees). That rate is the APR.

Example

A $10,000 loan at 10% for 3 years has a payment of $322.67. With a $500 fee you receive only $9,500, but your payments stay the same. The rate that turns $9,500 into those payments is about 13.56% APR, more than 3.5 points above the advertised rate.

Using APR to compare loans

  • Compare loans with the same term; APR comparisons across different lengths can mislead.
  • A loan with a low rate but high fees can cost more than one with a higher rate and no fees, especially if you repay early.
  • For credit cards, APR is simply the yearly interest rate, since there is no upfront fee to spread.

Comparing savings accounts instead? Use the APY calculator. For full payment details, try the loan calculator.

Last reviewed October 2026.

Frequently asked questions

What is APR?

APR, or annual percentage rate, is the yearly cost of a loan including interest and certain fees, expressed as a percentage. Because it includes fees, it is a better way to compare loans than the interest rate alone.

Why is APR higher than the interest rate?

Fees such as origination charges, points and some closing costs reduce the money you actually receive, but you still repay the full loan. Spreading those fees over the loan makes the effective rate higher than the note rate.

Which fees are included in APR?

For mortgages, APR typically includes origination fees, discount points, mortgage broker fees and some closing costs. It usually excludes appraisal, credit report, title and recording fees. Your lender's Loan Estimate shows the official APR.

What is the difference between APR and APY?

APR is a simple annual rate used for loans. APY (annual percentage yield) includes the effect of compounding and is used for savings. A 5% APR compounded monthly equals about 5.12% APY.

Does a shorter loan have a higher APR with the same fees?

Yes. Fees are spread over fewer payments on a short loan, so they raise the APR more. A $500 fee matters more on a 2-year loan than on a 30-year mortgage.