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APR calculator

A loan's advertised rate leaves out the fees. Enter the amount, the rate and the fees you pay up front to see the APR — the rate you are really paying once fees are counted.

APR calculator
$

%

years

$

APR

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How it works

Fees reduce the money you actually receive while the payments stay the same. The APR is the interest rate at which the payments exactly repay the amount you receive after fees, so it is always higher than the advertised rate when there are fees.

Find APR so that Σ M ÷ (1 + APR/12)k = P − fees

  • M — monthly payment at the advertised rate
  • P — loan amount
  • k — payment number, 1 to n

Because fees are spread over the term, they push the APR up most on short loans. A 600 fee on a 5-year loan adds far more to the APR than the same fee on a 30-year mortgage.

Common questions

What is the difference between APR and interest rate?

The interest rate sets the payment. The APR also counts upfront costs, so it lets you compare offers with different fees on equal terms.

Which fees should I include?

Fees you must pay to get the loan: origination or arrangement fees, mandatory broker fees and points. Optional extras and fees you would pay anyway are left out.

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