APR Calculator
Calculate the Annual Percentage Rate (APR) of a loan, including fees. APR gives you a more accurate picture of borrowing costs than the nominal interest rate alone.
Part of our Finance Calculators collection.
APR Calculator
Free online calculator
$
%
$
Origination fees, points, closing costs, etc.
How to Use This Calculator
- 1
Enter the loan amount.
- 2
Enter the nominal (stated) interest rate.
- 3
Enter all upfront fees.
- 4
Enter the loan term.
- 5
See the true APR including fees.
How APR is Calculated
APR accounts for fees by treating them as additional interest. Effective Loan = Loan Amount − Fees (you receive less but repay full amount) APR = rate that makes NPV of payments equal to effective loan amount APR is always ≥ nominal rate when fees exist.
Example Calculation
Example: $20,000 loan at 8%, $500 in fees, 60 months
Inputs
loanAmount: 20000nominalRate: 8loanFees: 500loanTermMonths: 60
Result
APR: ~8.62%
The $500 fee effectively raises the interest rate from 8% to ~8.62% APR because you receive $19,500 but repay based on $20,000.
Frequently Asked Questions
Why is APR higher than the interest rate?
APR includes fees and other costs of borrowing spread over the loan term. The more fees a loan has, the bigger the gap between nominal rate and APR.
Should I compare loans by rate or APR?
Always compare APR, especially when fees differ between lenders. A loan with 7.5% rate and $1,000 in fees may be more expensive than 8% with no fees.