APR Calculator
APR calculator: find the true annual percentage rate of a loan once fees are included, plus total interest and cost.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Updated
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Monthly payment
- $396.02
- Total interest
- $3,761.44
- Total cost with fees
- $24,361.44
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Loan amount
- 20000 $
- Quoted interest rate
- 7 %
- Term
- 5 years
- Fees paid at closing
- 600 $
Results
- APR
- 8.29%
- Monthly payment
- $396.02
- Total interest
- $3,761.44
- Total cost with fees
- $24,361.44
How does the APR Calculator work?
APR is the interest rate that makes the payments you will make equal to the money you actually receive after fees. Fees raise it above the quoted rate.
The calculator finds your payment from the quoted rate, then solves for the rate where those payments repay the loan amount minus fees.
Frequently asked questions
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR adds fees, so it shows the full yearly cost.
Is a lower APR always better?
Usually, if the term is the same. Compare loans with equal terms, since APR spreads fees over the loan length.
Do all fees count in APR?
Lenders include finance charges like origination and points. Some costs, such as late fees, are left out.
Does APR include the monthly payment?
No. APR is a yearly rate. The monthly payment is shown separately and is based on the quoted rate.