APR Calculator
Calculate the true Annual Percentage Rate of any loan — including all fees. Compare multiple lenders side by side to find the lowest real cost of borrowing.
APR ≠ Rate
Fees make APR higher
0.5% diff
≈ $30K on 30yr $300K
Required
Truth in Lending Act
General APR Calculator
Any loan type with fees
LOAN DETAILS
FEES
Results update live as you type.
True Annual Percentage Rate
6.563%
Nominal Rate: 6.00% · APR is 0.56% higher due to fees
$1,110
Monthly Payment
$133,225
Total Payments
$33,225
Total Interest
$2,500
Total Fees
Nominal Rate vs Real APR
Fee Impact on APR
| Fee Type | Amount | APR Impact |
|---|---|---|
| Nominal Interest | $33,225 | 6.00% |
| Upfront Fees | $2,500 | +0.56% |
| True APR Total Cost | $35,725 | 6.563% |
Lender Comparison
| Scenario | Rate | Fees | Monthly | True APR | |
|---|---|---|---|---|---|
| This Offer 🏆 | 6.00% | $2,500 | $1,110 | 6.563% |
Payment Breakdown: Principal vs Interest vs Fees
- Principal
- Interest
- Fees
APR vs Interest Rate: Why It Matters
The interest rate tells you the cost of borrowing the principal. The APR (Annual Percentage Rate) tells you the true all-in cost once mandatory fees are included. Our APR calculator exposes the real cost of any loan offer and lets you compare lenders on equal footing. For full loan analysis, also use our loan calculator, mortgage calculator, and refinance calculator.
How APR Is Calculated
More precisely, APR is the interest rate that makes the present value of all future loan payments equal to the net loan amount (after fees):
This is solved numerically (our calculator uses bisection). Our calculator does this automatically.
APR vs APY vs Interest Rate
- Interest Rate: cost of borrowing principal only. No fees.
- APR: interest rate + mandatory fees, annualized. Use this to compare loan offers.
- APY: accounts for compounding within the year. APY > APR when compounding more than annually.
At 6% compounded monthly: APY = (1 + 0.06/12)^12 − 1 ≈ 6.168%
Included in APR
- Origination fees — lender’s processing charge
- Discount points — prepaid interest to lower the rate
- Broker fees — mandatory third-party costs
- Lender-required mortgage insurance (PMI)
- Underwriting and admin fees
Excluded from APR
- Appraisal fees — third-party cost
- Title insurance — third-party cost
- Property taxes / escrow — recurring ownership costs
- Optional warranties
- Home inspection fees
Always review the Loan Estimate for excluded costs — APR alone doesn’t tell the whole story.
— FAQ