APR Calculator
Estimate APR from loan amount, interest rate, upfront fees, and loan term.
How this calculator works
How to use this calculator
Enter the loan amount, stated interest rate, upfront fees or closing costs, and loan term. The calculator estimates a monthly payment and an approximate APR that reflects the effect of fees on the cost of borrowing.
Formula used
The monthly payment is calculated using the standard amortization formula. APR is estimated by finding the monthly discount rate that makes the present value of the monthly payments equal to the net loan proceeds, which is the loan amount minus upfront fees. The monthly rate is then annualized.
Example calculation
For a $10,000 loan at 6.5% interest over 5 years with $300 in upfront fees, the estimated monthly payment is about $195.66 and the estimated APR is about 7.76%.
What the result means
APR is an estimated annualized borrowing cost that includes the effect of certain fees. This calculator is a simplified estimate and may not match lender disclosures exactly.
Frequently asked questions
Is APR the same as interest rate?
No. The interest rate is the cost of borrowing the principal. APR can include certain fees, so it may be higher than the interest rate.
Does this include every possible loan fee?
No. Enter the fees you want included. Real lender APR calculations may follow specific legal disclosure rules.
Can I use this for mortgages?
You can use it for a simplified estimate, but official mortgage APR may include lender-specific rules and costs.