APR Calculator
Find the annual percentage rate of a loan once upfront fees are included, and compare it with the stated interest rate. It runs in your browser.
Also searched as: annual percentage rate calculator · loan apr calculator · effective interest rate calculator · true cost of loan calculator
Updated November 9, 2026
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How to use it
- 1
Enter the loan
Type the amount and the stated yearly interest rate.
- 2
Add the term and fees
Enter the number of months and any upfront fees.
- 3
Compare APR and rate
See the APR and how much the fees add to the rate.
Questions about apr calculator
What is APR?
The yearly cost of a loan as a rate, including interest and upfront fees, so loans with different fees can be compared fairly.
Why is APR higher than the rate?
Fees are part of the cost, but you do not get that money. The APR is the rate that makes the payments match what you actually received.
Is it the same as the APR on my loan paperwork?
It follows the usual method, but lenders can include different fees and use their own rules, so your paperwork has the final figure.
Why the APR is higher than the rate
The stated rate counts only interest. A fee paid at the start is a real cost, yet you never receive that money, so the APR treats it as part of the price of borrowing. On a 20,000 loan at 6% over 60 months the payment is 386.66 and the APR is 6.00%. With 500 in fees the payment is the same, but the APR is 7.06%.
| Upfront fees | APR | Total interest and fees |
|---|---|---|
| 0.00 | 6.00% | 3,199.36 |
| 250.00 | 6.52% | 3,449.36 |
| 500.00 | 7.06% | 3,699.36 |
| 1,000.00 | 8.15% | 4,199.36 |
| 2,000.00 | 10.47% | 5,199.36 |
Using APR to compare offers
Fees weigh more on a short loan because they are spread over fewer months. The same 500 fee adds 2.50% to the rate on a 24-month loan, against 1.06% on a 60-month loan. That is why APR is useful for comparing loans with different fees.
The tool works out the payment from the stated rate, then finds the rate that gives that payment when the fees are treated as money not received. Lenders have their own rules for which fees count, so the figure on your loan paperwork is the final one.
What APR does not show
APR is a yearly rate for the whole term, so it tells you nothing about the size of the payment. A shorter loan has a bigger payment but costs less interest, and a longer one does the opposite. Decide what payment you can afford first, then use APR to choose between loans with the same term.
It also assumes the rate stays fixed. On a variable-rate loan the real cost can end up higher or lower than the APR shown at the start. A credit card APR works differently again, because a card charges interest on a balance that changes every month.