APR Calculator
Convert a loan rate plus fees into the true APR, with the monthly payment and total finance charge.
Independently verified for accuracy
Calculator by Toolsloft ↗- APR (%)
- 6.7
- Monthly payment
- 1264.14
- Finance charge
- 259088.98
- Total paid
- 455088.98
This calculator turns a loan rate plus its upfront fees into an annual percentage rate, the single number that lets you compare loans fairly. Enter the loan amount, the note rate, the term, and the fees to see the APR, the monthly payment, and the total finance charge. Use it when one lender quotes a low rate but high fees and another does the opposite.
How this is calculated
The payment is set by the note rate on the full loan amount. The APR is the rate that discounts those payments back to the net amount you actually receive, which is the loan minus fees. This calculator finds that rate by bisection, following the Truth in Lending definition of APR.
How to use
- Enter the loan amount and the quoted (note) rate.
- Enter the term in months and the total upfront fees.
- Read the APR, monthly payment, and finance charge.
Examples
- $200,000 at 6.5% / 360 mo, $4,000 fees:
APR 6.70% - $15,000 at 7% / 60 mo, no fees:
APR 7.00% (equals the rate)
FAQ
- What is the difference between the interest rate and the APR?
- The interest rate sets your payment. The APR also folds in upfront fees, spreading them across the loan, so it reflects the true yearly cost. With no fees the APR equals the rate.
- Why is the APR higher than my rate?
- Fees reduce the money you actually receive while the payments stay the same, so the effective cost of the money you keep is higher than the note rate. That gap is the APR.
- What fees should I include?
- Include finance charges paid to get the loan, such as origination fees, points, and broker fees. Third-party costs that are not a condition of the loan are usually left out of APR.