APR Calculator
The true annual rate of a loan once fees are included, plus effective annual rate.
About this tool
Enter the loan amount, the advertised interest rate, the term in months and any upfront fees, and say whether the fees are deducted from the money you receive or added to the loan. The calculator returns the APR, the effective annual rate, the monthly payment, total paid and total cost of credit.
Why APR is higher than the advertised rate
A loan's interest rate tells you what the lender charges on the balance; it does not include arrangement, origination, broker or processing fees. The annual percentage rate does. It is the rate at which the present value of all your payments equals the money you actually get. Borrow 20,000 at 8.5% over 60 months with 600 of fees taken upfront, and the payment of 410.33 is calculated on 20,000 while you only receive 19,400 โ so the APR is about 9.8%. If the fees are added to the balance instead, you receive the full amount but pay interest on the fees, which also raises the APR. In the US, Truth in Lending APR is the monthly rate ร 12; the UK and EU APRC is the effective annual rate, which includes monthly compounding (10.26% in the example) โ both are shown. APR is the right figure for comparing offers with different fee structures; it does not include optional insurance, late fees or rate changes on variable loans. General information, not financial advice. The loan comparison calculator ranks several offers, the loan calculator shows the schedule, and the credit card payoff calculator covers revolving debt.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the balance; APR adds the fees, expressed as a yearly rate. APR is the better figure for comparing loans.
How do fees change the APR?
Fees taken from the loan mean you receive less but repay the same, so the effective rate rises. 600 of fees on a 20,000, 5-year loan at 8.5% gives an APR of about 9.8%.
Is APR the same as APY or EAR?
No. APR is usually the monthly rate ร 12; APY or EAR adds compounding. On the same loan, EAR is always a little higher.
Is my data stored?
No. The calculation runs in your browser.