APR Calculator
Enter the loan amount, interest rate, term, and fees to find the real APR and total cost of borrowing — calculated in your browser.
APR
7.13%
Monthly payment
$188.71
Total cost
$11,322.74
Total interest
$1,322.74
Nominal rate vs APR
| Measure | Rate |
|---|---|
| Nominal interest rate | 5.00% |
| APR (incl. fees) | 7.13% |
APR rolls upfront fees into an equivalent yearly rate, so it reflects the true cost of borrowing.
How to use APR Calculator
This APR calculator reveals the true annual cost of a loan by folding upfront fees into the interest rate. A loan can advertise a low nominal rate yet cost much more once origination and other fees are added, so the annual percentage rate gives you a fairer basis for comparison. Enter the loan amount, nominal rate, term and fees to see the APR, the monthly payment and the total interest you will pay.
- Enter the loan amount you intend to borrow.
- Enter the nominal (quoted) interest rate.
- Set the loan term in months.
- Add any upfront fees such as origination or processing charges.
- Compare the resulting APR against the nominal rate.
Your data never leaves your device — 100% private processing.
How APR differs from the interest rate
The nominal interest rate is the cost of borrowing the principal alone, while the APR also accounts for upfront fees spread across the life of the loan. The calculator first finds the monthly payment using the nominal rate, then solves for the rate that makes the present value of those payments equal to the amount you actually received after fees. Because you got less cash but repay the same schedule, the effective rate — the APR — is higher whenever fees are involved.
| Scenario | Nominal rate | APR |
|---|---|---|
| No fees | 5.00% | 5.00% |
| $500 fees on $10k | 5.00% | above 6% |
| Higher fees | 5.00% | higher still |
Using APR to compare loan offers
APR lets you compare loans with different fee structures on equal footing, which is why lenders are required to disclose it. A loan with a slightly higher nominal rate but no fees can beat a lower-rate loan loaded with charges. Note that spreading fees over a longer term lowers their annual impact, so APR also depends on the term. Always compare APRs for loans of the same length, and read the fine print to confirm which fees are included.
Worked examples
No fees
Inputs: $10,000 · 5% · 60 mo · $0
Result: APR equals 5%
With fees
Inputs: $10,000 · 5% · 60 mo · $500
Result: APR above 6%
Glossary
- APR
- Annual percentage rate — the yearly cost of a loan including fees.
- Nominal rate
- The quoted interest rate on the principal, excluding fees.
- Origination fee
- An upfront charge for processing and setting up a loan.
- Present value
- The current worth of future payments discounted at a given rate.
- Total interest
- The sum of all interest paid over the life of the loan.
Related reading
Frequently Asked Questions
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Why use APR Calculator?
- Transparent formulas so you understand every calculation
- Supports multiple currencies and regional tax rules
- Saves you from spreadsheet errors with validated inputs
- Shareable results for discussions with advisors or partners
Common use cases
- Calculate how long to pay off a credit card balance
- Model different mortgage scenarios before house hunting
- Forecast investment growth with compound interest
- Break even analysis for a new product or service
- Compare net salary after tax across different countries
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