💳 APR Calculator
Enter your loan amount, interest rate, term, and any upfront fees to estimate the true Annual Percentage Rate (APR) of the loan.
What Is APR?
The Annual Percentage Rate (APR) is a broader measure of borrowing cost than the stated interest rate alone, because it folds in upfront fees and closing costs to reveal the true annualized cost of the loan. Two loans with identical interest rates can have very different APRs if one charges higher fees.
How This Is Calculated
This calculator first computes the fixed monthly payment from your loan amount, rate, and term, then solves for the rate that equates the present value of those payments to the amount you actually receive after fees are subtracted (the net proceeds). That solved rate, annualized, is the APR.
Why It Matters
Because APR standardizes the effect of fees into a single rate, it is one of the most reliable ways to compare loan offers from different lenders. A lower stated rate with high fees can end up costing more than a slightly higher rate with no fees.
- For general financial planning and educational purposes only, not a lending disclosure.
- Actual APR disclosed by a lender may include additional cost items not captured here.