APR Calculator
The advertised rate never tells the whole story.
Loan Details
Origination fee, points, processing fees
APR (Annual Percentage Rate)
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
On this page
APR Calculator — the true cost of borrowing
The advertised interest rate hides the real cost. APR (Annual Percentage Rate) includes fees, points and closing costs, giving the honest yearly cost of the loan. This calculator converts your loan amount, monthly payment and fees into the true APR — the number regulators require lenders to show.
APR vs interest rate
The interest rate is the cost of the principal; APR adds origination fees, points, mortgage insurance and some closing costs divided over the loan term.
For a $250,000 loan at 10% with 2% fees, the APR is about 10.3–10.5% — the real cost.
Always compare APR across lenders. On a 30-year loan, 0.2% APR difference equals thousands of dollars.
APR traps to watch
A 0% 'promotional APR' reverts to 20%+ after the promo — calculate the blended cost of holding a balance.
Some lenders exclude certain fees from APR advertisements — ask for the 'all-in' APR.
Payday and BNPL products quote 'fees' instead of rates; APR pulls them together for comparison.
How to use this calculator
- Enter the loan amount you're borrowing.
- Enter the annual interest rate quoted.
- Add the fees in monetary units, and the monthly payment if known.
- Read the true APR with and without fees.
- When comparing two loans, compare their APRs, not rates.
Pro tips
- For mortgages, compare APR with the same assumptions — term and fees basis matter.
- Short loans: fees hit APR harder (spread over fewer months).
- Never sign a loan without asking 'what's the all-in APR?'