How is APR calculated?

APR is the yearly rate at which the present value of all your payments equals the amount you actually receive after fees. There's no simple formula, so the calculator solves for it numerically.

Does adding the fee to the loan change the APR?

Yes, a little. Financing the fee means you pay interest on it, which raises the payment. Both options are available so you can compare.

Is APR the same as APY?

No. APY (annual percentage yield) includes compounding and is mostly used for savings. A loan's APR is a simple yearly rate: the monthly rate × 12.

APR Calculator

Work out the annual percentage rate (APR) of a fixed-rate loan once fees are counted. Enter the loan amount, interest rate, term and fees to see how much the fees add to the true yearly cost of borrowing.

Loan amount

Interest rate (% per year)

The note rate quoted by the lender.

Term (months)

Fees and finance charges

Origination, broker or documentation fees.

8.057%

Estimated APR

$304.22

Monthly payment

$10,951.90

Total of payments

$1,251.90

Interest + fees

APR is the yearly rate at which your payments would exactly repay the cash you actually receive ($9,700.00) — so fees push it above the 6% interest rate. This uses the actuarial method behind US Truth in Lending disclosures for a fixed-rate loan with equal monthly payments. Lenders may count fees differently, so treat this as an estimate and compare with the APR on your official loan disclosure. For a full payment schedule, use the Loan Calculator.

Everything you enter is processed in your browser and isn't sent to our servers.

How to use apr calculator

1Enter the loan amount, the interest rate the lender quoted and the term in months.
2Enter any up-front fees, such as an origination or documentation fee.
3Choose whether the fees are paid up front (or deducted from the loan) or added to the loan balance.
4Read the estimated APR, the monthly payment and the total of interest plus fees.

About this tool

The interest rate only covers interest. APR also counts finance charges such as origination fees, so two loans with the same rate can have different APRs. That makes APR a fairer way to compare offers.

The calculator uses the actuarial method behind US Truth in Lending disclosures: it finds the yearly rate at which your monthly payments exactly repay the money you actually receive. If you borrow $10,000 at 6% for 36 months but pay a $300 fee, you only receive $9,700 while repaying the full amount — an APR of about 8.06%.

This is an estimate for a fixed-rate loan with equal monthly payments. Lenders may treat some fees differently, so compare the result with the APR on your official loan disclosure. For a full amortization schedule, use the Loan Calculator.

Frequently asked questions

The interest rate is the cost of borrowing the principal. APR adds certain fees and expresses the total as a yearly rate, so it's usually higher than the interest rate when fees are charged.

Related tools

Loan Calculator

Calculate the monthly payment for any fixed-rate loan.

Car Loan Calculator

Estimate your monthly car payment, including trade-in and tax.

Mortgage Calculator

Estimate your monthly mortgage payment, interest and payoff timeline.

Simple Interest Calculator

Calculate interest earned on a principal at a fixed rate.

Credit Card Payoff Calculator

See how long it takes to pay off a credit card and how much interest you'll pay.