APR Calculator
The advertised rate never tells the whole story.
Loan Details
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yrs
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Origination fee, points, processing fees
APR (Annual Percentage Rate)
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Monthly Payment
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Total Cost (incl. fees)
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APR vs Advertised Rate
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Why APR matters
Two loans can have the same advertised interest rate but different costs if one charges higher fees. APR converts the entire cost — rate plus fees — into a single yearly percentage, so you can compare loans fairly. Always compare APRs, not just rates.
APR Calculator FAQ
Is APR always higher than the interest rate?▶
Yes, when fees are charged. With zero fees, APR equals the interest rate. The bigger the fees, the bigger the gap.
Should I choose the loan with the lowest APR?▶
Usually, yes — but also check the total cost and the monthly payment. A loan with a slightly higher APR but much lower monthly payment might fit your budget better.