APR Calculator - Annual Percentage Rate & Loan Cost Calculator
Calculate your true Annual Percentage Rate (APR) with our free tool. Understand the total cost of borrowing, including interest rates and upfront fees for mortgages and personal loans.
Strategy Tip
"Compare APR, not just interest rates. A low interest rate with high upfront fees could actually be more expensive than a higher rate with no fees."
System Ready
Enter loan details and upfront fees to calculate the true annual percentage rate.
APR Calculator - Annual Percentage Rate & Loan Cost Calculator
Calculate your true Annual Percentage Rate (APR) with our free tool. Understand the total cost of borrowing, including interest rates and upfront fees for mortgages and personal loans.
What is APR?
The Annual Percentage Rate (APR) is a broader measure of the cost of borrowing money than the interest rate. It includes the interest rate plus other costs such as broker fees, points, and some closing costs.
Transparency in Lending
Standardizing loan comparisons by accounting for hidden costs and origination fees.
How APR is Calculated
Fees + Interest = Total CostAPR is calculated by spreading the total finance charges over the life of the loan. It is often solved using numerical iteration to find the rate that equates the present value of payments to the net loan amount.
Loan Comparisons
Mortgages
A $300k loan at 6% with $5k in fees results in a higher APR than a 6% loan with $2k in fees.
Personal Loans
Origination fees on small loans can significantly spike the APR compared to the base interest rate.