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APR Calculator
APR (Annual Percentage Rate) shows the true yearly cost of a loan once fees and points are included, so you can compare offers fairly.
True APR Pro
Advanced annual percentage rate analysis
Loan Terms
$
%
Upfront Fees
$
%
Effective APR
0.00%
Monthly Payment
$0.00
Total Fees Paid
$0.00
The interest rate on a loan offer is only part of the story. Fees, origination charges and closing costs all push the real cost higher, and APR rolls them into a single yearly rate. This calculator converts any loan offer into its APR so two offers can be compared honestly.
How to use this calculator
- Enter the loan amount, the stated interest rate and the term.
- Add the fees and closing costs charged upfront.
- Press calculate to see the APR and the total cost of the loan.
APR vs interest rate
If a loan had no fees at all, its APR and interest rate would be identical. The wider the gap between the two numbers, the more the loan costs in fees. That is why a loan with a slightly lower rate but heavy fees can end up more expensive than a higher-rate loan with none.
Frequently asked questions
Why is my APR higher than the interest rate?
Because APR includes most upfront fees spread over the loan term, on top of the interest. More fees mean a bigger gap between the two figures.
Does APR include every cost?
It includes most lender fees, but not everything — late payment penalties and some third-party charges may sit outside it. Always check the loan's full fee schedule.
Should I always choose the lowest APR?
For the same loan amount and term, yes, APR is the fairest comparison. If you may repay early, also weigh the upfront fees, since you have less time to spread them over.